The Principle of Monetary Neutrality Implies That an Increase in the Money

question 176

Multiple Choice

The principle of monetary neutrality implies that an increase in the money supply will

• A)increase real GDP and the price level.
• B)increase real GDP,but not the price level.
• C)increase the price level,but not real GDP.
• D)increase neither the price level nor real GDP.

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Definitions:

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