If Money Is Neutral,then Changes in the Quantity of Money

question 7

Multiple Choice

If money is neutral,then changes in the quantity of money

• A)do not affect real output.
• B)affect both nominal and real output
• C)do not affect nominal output.
• D)affect neither nominal nor real output.

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Definitions:

Antitrust Laws

Regulations designed to protect trade and commerce from unfair practices, such as monopolies and cartels.

Cartel

An association of independent businesses organized to control production, pricing, and marketing of goods to minimize competition.

U.S. Antitrust Laws

Laws enacted by the U.S. to protect consumers from predatory business practices by ensuring that fair competition exists in an open-market economy.

Federal Trade Commission Act

A U.S. federal law established in 1914 to promote consumer protection and eliminate and prevent anticompetitive business practices.