Monetary Neutrality Means That a Change in the Money Supply

question 225

Multiple Choice

Monetary neutrality means that a change in the money supply

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

Capital Balance

The amount of funds contributed by owners or shareholders, plus retained earnings and minus any distributions to owners or shareholders.

Independent Appraisal

The process of determining the value of an asset, property, or company by a professional appraiser who is not influenced by any party involved in the transaction.

Retires

The process of removing an asset from the company’s balance sheet because it has been disposed of or is no longer in use.

Capital Account Balance

Capital Account Balance is the net result of public and private international investments flowing in and out of a country, but it also refers to an individual's or company's financial statement showing the equity ownership and contributed capital.