According to the Classical Dichotomy and Money Neutrality, a Doubling

question 118

Short Answer

According to the classical dichotomy and money neutrality, a doubling of the money supply, holding all else constant, causes prices to _____ and real GDP to _____.

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Definitions:

Cash Dividends

A distribution of a portion of a company's earnings, decided by the board of directors, to its shareholders in the form of cash.

IFRS

International Financial Reporting Standards, a set of accounting standards developed by the International Accounting Standards Board (IASB) that is becoming the global standard for the preparation of public company financial statements.

Convertible Notes

Debt securities that can be converted into a predetermined number of the issuer's equity shares, usually at the option of the holder.

Interest Expense

The cost incurred by an entity for borrowed funds, generally calculated as the interest rate times the principal amount of the debt.