The Neutrality of Money Implies

question 40

Multiple Choice

The neutrality of money implies:

• A)one time changes in real variables do not affect money demand.
• B)one time changes in the money supply do not affect real variables.
• C)one time changes in nominal variables do not affect money demand.
• D)one time changes in the money supply do not affect nominal variables.

---

Definitions:

Machine-hours

A measure of the amount of time machines are used in the production process, often used as an allocation base for applying manufacturing overhead.

Job T629

A unique identifier for a specific job, task, or project within a job-order costing system, potentially representing a particular order or production batch.

Machine-hour

A unit of measure representing the operation of machinery for one hour, often used as a basis for allocating manufacturing overhead costs.

Job Cost

A method used in accounting to track the costs associated with a specific job or order, capturing materials, labor, and overhead expenses.