Monetary Neutrality Means That a Change in the Money Supply

question 209

Multiple Choice

Monetary neutrality means that a change in the money supply

• A)does not change real variables.Most economists think this is a good description of the economy in the short run and in the long run.
• B)does not change real variables.Most economists think this is a good description of the economy in the long run but not the short run.
• C)does not change nominal variables.Most economists think this is a good description of the economy in the short-run and the long run.
• D)does not change nominal variables.Most economists think this is a good description of the economy in the long run but not the short run.

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Definitions:

Hundred Years' War

A prolonged series of conflicts from 1337 to 1453 between England and France, marked by several periods of warfare and truces.

England

A country that is part of the United Kingdom, located on the island of Great Britain, known for its rich history, cultural heritage, and major contributions to arts, science, and democracy.

Encomienda

A labor system in Spanish America giving settlers the right to tax local Indigenous people or to demand their labor in exchange for protecting them and teaching them Christianity.