An important argument in the proposition that money is neutral in the long-run is that the nominal interest rate must equal the real interest rate. the federal budget is balanced. O prices are flexible.

An important argument in the proposition that money is neutral in the long-run is that the nominal interest rate must equal the real interest rate. the federal budget is balanced. O prices are flexible.

Essentials of Economics (MindTap Course List)

8th Edition

ISBN:9781337091992

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter22: Money Growth And Inflation

Section: Chapter Questions

Problem 6PA

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Question

An important argument in the proposition that money is neutral in the long-run is
that
the nominal interest rate must equal the real interest rate.
the federal budget is balanced.
O prices are flexible.
business cycles have become much milder.

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