In the Long Run,a One-Time Percentage Increase in the Money

question 39

Multiple Choice

In the long run,a one-time percentage increase in the money supply is matched by the same one-time percentage rise in the price level,leaving unchanged the real money supply and ________.This proposition is called money ________.

• A)other economic variables such as interest rates; neutrality
• B)the nominal exchange rate; neutrality
• C)all other economic variables such as interest rates; illusion
• D)the nominal exchange rate; illusion

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