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    Modern Principles Macroeconomics
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    Exam 12: Inflation and the Quantity Theory of Money
  5. Question
    The Quantity Theory States That Money Is Neutral
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The Quantity Theory States That Money Is Neutral

Question 62

Question 62

Multiple Choice

The quantity theory states that money is neutral:


A) in both the short run and the long run.
B) only in the short run.
C) only in the long run.
D) neither in the short run nor in the long run.

Correct Answer:

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