Friedman and Schwarz Argue That Money Is Not Neutral Because

Multiple Choice

Friedman and Schwarz argue that money is not neutral because

A) theoretical models of the economy don't show monetary neutrality.
B) money is a leading, procyclical variable.
C) they found several historical incidents in which changes in the money supply were not responses to macroeconomic conditions, and output moved in the same direction as money.
D) they found no evidence that productivity changes or changes in government spending contributed to business cycles; only monetary changes preceded every recession.