When money is neutral,which of the following increases when the money supply growth rate increases?
A)real output growth
B)real interest rates
C)nominal interest rates
D)the money supply divided by the price level

Question

Quizplus · Accepted Answer

When money is neutral, changes in the money supply only affect nominal variables, such as nominal interest rates, not real variables like real output or real interest rates.

When Money Is Neutral,which of the Following Increases When the Money