Money is neutral in the model economy we discussed because
A) the money supply is exogenous.
B) the money supply is intertemporal.
C) prices are fully flexible.
D) it is a barter economy.
C
You might also like to view...
The Fed has the greatest control over which of the following?
A) the money multiplier B) discount loans C) the amount of excess reserves D) the nonborrowed monetary base
Refer to the above table. If the price of the good produced is $8, the marginal revenue product of the 12th worker is
A) $720 B) $800 C) $5520 D) $560
Which statement is true?
A. Russia has embraced capitalism at a much faster rate than China. B. The Russian government today is moving much closer to central planning than when the country was part of the Soviet Union. C. The standard of living in Russia is higher than that of the United States. D. None of the statements are true.
In the long run, 
A. the total revenue curve will change its slope. B. the firm will operate at point C. C. the firm will operate at point B. D. the firm will operate at point D.