If money is neutral,then changes in the quantity of money
A)do not affect real output.
B)affect both nominal and real output
C)do not affect nominal output.
D)affect neither nominal nor real output.

Question

Quizplus · Accepted Answer

Money neutrality implies that changes in the money supply only affect nominal variables (like prices and wages) and do not affect real variables (like real output or employment).

If Money Is Neutral,then Changes in the Quantity of Money