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Neutrality of Money Is the Idea That

Question 19

Multiple Choice

Neutrality of money is the idea that:


A) changes in aggregate price levels do not affect real outcomes in the economy.
B) monetary policy conducted by the Fed has no real impact on the economy.
C) it makes no difference who is spending each dollar in real terms.
D) there is no difference between fiscal and monetary policy as long as the same amount of money is injected into the economy.

Correct Answer:

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