At Westonci.ca, we connect you with the answers you need, thanks to our active and informed community. Experience the convenience of finding accurate answers to your questions from knowledgeable experts on our platform. Our platform offers a seamless experience for finding reliable answers from a network of knowledgeable professionals.
Sagot :
The irrelevance of monetary changes for real variables is called monetary neutrality. Most economists accept monetary neutrality as a good description of the economy in the long run, but not the short run
This statement is TRUE
What is Money neutrality?
According to the notion of money neutrality, commonly known as neutral money, changes in the money supply only have an impact on nominal variables and not actual variables.
In other words, the Federal Reserve (Fed) and central banks' printing of money can affect prices and wages but not the economy's output or structure.
Although many modern economists continue to hold the view that neutrality is assumed in the long run once money has circulated throughout the economy, modern versions of the theory acknowledge that changes in the money supply might have an impact on output or unemployment levels in the short term.
Learn about Money Neutrality from the link below
https://brainly.com/question/29332624
#SPJ4
Thank you for choosing our platform. We're dedicated to providing the best answers for all your questions. Visit us again. Your visit means a lot to us. Don't hesitate to return for more reliable answers to any questions you may have. Keep exploring Westonci.ca for more insightful answers to your questions. We're here to help.
