1 What is money neutrality 2 How do prices react
1. What is money neutrality?
2. How do prices react in the long run to an increase in the money supply? Give an intuitive economic explanation.
3. How do prices react in the long run to an increase in money demand? Give an intuitive economic explanation.
4. Give two examples of recent changes related to payments technology, one implying higher and the other lower money demand.
5. “Money is a dominated asset.” Derive and explain an expression in support of this statement.

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