Question: Explain the logic of the monetary neutrality and why changes in the quantity of money only affect nominal variables and not real variables. Do you
Explain the logic of the monetary neutrality and why changes in the quantity of money only affect nominal variables and not real variables. Do you agree that monetary neutrality approximates the behavior of the economy in the long run? Why or why not?
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The logic of monetary neutrality is based on the assumption that money is purely a medium of exchang... View full answer
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