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The Neutrality of Money Refers to

Question 91

Multiple Choice

The neutrality of money refers to


A) the inability of changes in the money supply to affect the nominal interest rate, even in the long run.
B) the inability of changes in the money supply to affect the price level, even in the long run.
C) the fact that in the long run any percentage increase in the money supply leads to an equal percentage increase in the price level.
D) the fact that in the long run any percentage increase in the money supply leads to an equal percentage increase in the nominal interest rate.

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