Lorenzolxb9342 Lorenzolxb9342
  • 22-04-2020
  • Business
contestada

Monetary neutrality means that a change in the money supply can cause _______

Respuesta :

topeadeniran2 topeadeniran2
  • 26-04-2020

Answer: does not change real variables.

Explanation:

Monetary Neutrality is the idea that a change in the money stock affects only nominal variables in the economy like wages, prices, and exchange rates, and has no effect on real variables, like real GDP, employment, and real consumption.

When money is neutral and the velocity is stable, a rise in money supply will create a proportional increase in the price level and the nominal output.

Answer Link

Otras preguntas

how does trade enrich a civilization
Describe how Egypians used hieroglyphics and papyrus
Which statement best describes the US welfare system in 1930?.
A newborn baby gained 7/16 of a pound in a 1/2 of a month.what was the baby's growth rate in pounds per month.
How did prince Henry change the course of Portugals history.
Select all that apply. Even though a rock and a dog are both made out of atoms, one is considered alive and one isn't. Select all of the characteristics that ar
Examples on how learning has a positive effect on someone life.
236= 2 hundreds 3 tens and ______ ones = 2 hundreds 2 tens and ______ ones
Which two design elements can be found in the U.S. flag? balance and pattern A:pattern and rhythm B:emphasis and unity C:balance and pattern.
Which statement best describes the US welfare system in 1930?.