Ask Question
BusinessBusiness
10 April, 15:02

According to the principle of monetary neutrality, a decrease in the money supply will not change a. nominal GDP. b. the price level. c. unemployment. d. the value of money

+1
Answers (1)
  1. 10 April, 18:46
    0
    The correct answer is B

    Explanation:

    The principle of monetary neutrality, is the one which means that the change in the stock of the money that affects only nominal variables in the economy like the exchange rate, prices, wages, with have no effect on the real variables such as the real GDP, real consumption and the employment.

    The monetary neutrality is defined as the change in the money supply, will only affect the one variable, the price level and real GDP is not impacted.
Know the Answer?
Not Sure About the Answer?
Get an answer to your question ✅ “According to the principle of monetary neutrality, a decrease in the money supply will not change a. nominal GDP. b. the price level. c. ...” in 📙 Business if there is no answer or all answers are wrong, use a search bar and try to find the answer among similar questions.
Search for Other Answers
You Might be Interested in
Consumer credit has very few advantages and is best avoided at all times. True False
Answers (1)
Sugar City issued $2 million of bonds to fund the construction of a new city office building. The bonds have a stated rate of interest of 5 percent and were sold at 101.
Answers (2)
High interest rates make it difficult for people to pay off credit card debt in a reasonable period of time. the interest i (in dollars) paid on a $10,000 debt over 3 years when the interest rate is r% can be approximated by the equation shown below.
Answers (1)
According to the quantity theory of money, a 3 percent increase in the money supply a. leaves the price level unchanged. b. causes the price level to fall by 3 percent. c. causes the price level to rise by 3 percent. d.
Answers (1)
A very small country's gross domestic product is $12 million. a) If government expenditures amount to $7.5 million and gross private domestic investment is $5.5 million, what would be the amount of net exports of goods and services?
Answers (1)
New Questions in Business
Which statement about stakeholders is BEST? 1. Stakeholders are external to a company. 2. Stakeholders can potentially impact project development. 3. Stakeholders wield considerable power. 4.
Answers (1)
Henry Hobbs, age 51, has compensation of $72,000. The normal retirement age for his 457 (b) plan is age 62. Henry has unused deferrals totaling $21,000 as of January 1, 2019. How much can Henry defer into his 457 (b) public plan for 2019?
Answers (1)
According to your text, managers today must learn to transcend paradox. What is a paradox?
Answers (1)
Property, plant, and equipment and intangible assets are
Answers (1)
Beridze manufacturing expects to produce 2,400 units in january and 3,700 units in february. beridze budgets $45 per unit for direct materials.
Answers (1)
Home » Business » According to the principle of monetary neutrality, a decrease in the money supply will not change a. nominal GDP. b. the price level. c. unemployment. d. the value of money
Sign Up Forgot Password?