Question
Asked Dec 1, 2019
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Money neutrality is the proposition that changes in money have no real effect on the economy.
Selected Answer:

False

Answers:

True

 

False

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Expert Answer

Step 1

The phase ‘Neutrality of money’ was given in 1931 by an Austrian economist Friedrich A. Hayek.

Step 2

Money neutrality states that money is neutral. This means that money supply affects only nominal variables like price, exchange rate, and does not affect any real variables like rea...

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