Suppose the fed doubles the growth rate of the quantity of money in the economy. In the long run, the increase in money growth w

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tekilochka [14]

2 years ago

13

Suppose the fed doubles the growth rate of the quantity of money in the economy. In the long run, the increase in money growth w

ill change which of the following? check all that apply.

Business

1 answer:

Harlamova29_29 [7] · Answer 1 · 2023-06-22T00:33:26+03:00

In the long run, the increase in money growth will change price levels and inflation.

<h3>What is money neutrality?</h3>

Money neutrality is an economic theory that changes in money supply do not affect real variables but only affect nominal variables. As a result, monetary policy is neutral in the long-run and affects real variables in the short-run.

Here are the options: (A) The price level. (B) The level of technological knowledge. (C) The quantity of physical capital. (D) The inflation rate.

To learn more about money neutrality, please check: brainly.com/question/16245225