The classical principle of monetary neutrality states

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-The classical principle of monetary neutrality states that changes in the money supply do not influence ________ variables and is thought most applicable in the ________ run.

a. nominal, short

b. nominal, long

c. real, short

d. real, long

-If nominal GDP is $400, real GDP is $200, and the money supply is $100, then

a. the price level is ½, and velocity is 2.

b. the price level is ½ , and velocity is 4.

c. the price level is 2, and velocity is 2.

d. the price level is 2, and velocity is 4.

-According to the quantity theory of money, which variable in the quantity equation is most stable over long periods of time?

a. money

b. velocity

c. price level

d. output

Reference no: EM13815081

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