When Economists State That Money Is Neutral in the Long

question 35

Multiple Choice

When economists state that money is neutral in the long run, they mean that in the long run,

• A)fluctuations in the money supply are equally likely to lead to recessions as to expansions.
• B)changes in the money supply have the same impact on the rich as they do on the poor.
• C)the level of output is independent of the nominal money supply.
• D)the price level is independent of the nominal money supply.

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Definitions:

Homozygous

Referring to an organism possessing two identical alleles for a specific gene, resulting in a uniform expression of that genetic trait.

Down Syndrome

An inherited condition in which individuals have abnormalities of the face, eyelids, tongue, and other parts of the body and exhibit physical and intellectual disability; usually results from trisomy of chromosome 21.

Trisomic

A genetic condition characterized by having three copies of a particular chromosome instead of the normal two.

Colchicine

A drug that blocks the division of eukaryotic cells by binding to tubulin subunits, which make up the microtubules, the major component of the mitotic spindle.