Ask Question
BusinessBusiness
9 October, 01:45

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

+4
Answers (1)
  1. 9 October, 01:55
    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?
Find 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 the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Search for Other Answers
You Might be Interested in
Argus Finnian is a calculating, self-centred salesperson. He never engages in relationship marketing. He looks on any sales situation as a "win-lose" situation, and he believes that any legal method he can use is justified when he wins.
Answers (1)
Transaction processing systems are most commonly encountered at the senior management level of an organization. True / False.
Answers (1)
10. One drawback of a personal marketing survey is that A. the response time if rather long. B. respondents may misinterpret questions. C. it results in a low response rate. D. answers may be influenced by the interviewer.
Answers (1)
If retention is so much more profitable than acquisition, why have companies persisted for so long in spending more on getting new customer than keeping the ones they have
Answers (1)
On November 1, Year 1 Dixon Company paid $20 per share to buy back 1,000 shares of its $8 par value common stock. The stock had originally sold for $15.
Answers (1)
New Questions in Business
Adamson Company manufactures four lines of garden tools. As a result of an activity analysis, the accounting department has identified eight activity cost pools.
Answers (1)
Compute the 2019 Federal income tax liability and the marginal and effective tax rates in each of the following independent cases. Click here to access the 2019 tax rate schedule. If required, round the tax liability the nearest dollar.
Answers (1)
For a portfolio of 40 randomly selected stocks, which of the following is most likely to be true? a. The beta of the portfolio is less than the weighted average of the betas of the individual stocks. b.
Answers (1)
What publication can give you an idea of how administrative jobs are going to change in the future? A: Office Pro B: Occupational Outlook Handbook C: From 9 to 5 D: The Executary
Answers (1)
At a four-way stop, if two cars arrive at the intersection at the same time: A) the larger car has the right of way B) the vehicle on the right yields to the vehicle on the left C) the smaller car has the right of way D) the vehicle on the left
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?