Multiple Choice
What does the principle of monetary neutrality imply?
A) An increase in the money supply will increase real GDP and the price level.
B) An increase in the money supply will increase real GDP, but not the price level.
C) An increase in the money supply will increase the price level, but not real GDP.
D) An increase in the money supply will increase neither the price level nor real GDP.
Correct Answer:
Verified
Correct Answer:
Verified
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