Question: achieve.macmillanlearning.com Blackboard HW 1 9 : Homework - Ch . 1 9 : Monetary Policy - Introduction to Economics - 0 0 5 - Achieve

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What does the term money neutrality mean?

n each

Changes in the money supply have no real effects on the economy in the long run.

Changes in the money supply impact everyone in an economy in a similar way.

Because the Federal Reserve is relatively free from oversight, it can take actions that are unpopular if they are in the best interest of the country.

Changes in the money supply and the price level are inversely related and proportional, meaning that a

10 %

increase in the money supply decreases prices by exactly

10 % .

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