In the monetary intertemporal model, changing M
A) has real consequences.
B) affects the price level.
C) has no impact on prices or inflation.
D) is used to create economic growth in the short run.
E) affects output directly.

Question

Quizplus · Accepted Answer

In the monetary intertemporal model, changing the money supply (M) primarily affects the price level, as it influences inflation and the nominal variables in the economy, rather than having direct real consequences on output or economic growth.

In the Monetary Intertemporal Model, Changing M