You and a Friend Are Arguing Over the Issue of the Nonneutrality

question 75

Multiple Choice

You and a friend are arguing over the issue of the nonneutrality of money.You believe that money is not neutral,and to prove your point you would cite all of the following except

• A)large gold discoveries that increased the money supply preceded an economic boom.
• B)a change in monetary institutions preceded a boom or recession.
• C)a change in the leadership of the Central Bank and its policy was followed by noticeable changes in the money supply and a recession or inflation.
• D)the fact that every recession was preceded by a drop in the money supply.

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Definitions:

Public Good

Goods or services that are available for use by all members of a society, typically provided without profit by the government, such as public parks or national defense.

Various States

Diverse or different states within a country, especially in a federal system where states have certain levels of autonomy and unique laws and policies.

Republic

A form of government in which power is held by the elected representatives of the people, and the head of state is usually a president.

Revolutionary-era

The period marked by political and social upheavals leading up to, during, and immediately following the American Revolution, characterized by the American colonies' struggle for independence from British rule.