C) illustrate the impact of an expansionary monetary policy on the inflation rate and the price level. Also do explain how the transition process works from the initial equilibrium to the final equilibrium.    d: What is meant by the phrase “Money is neutral in the long run”? (in other words, what is monetary neutrality?). Explain by using the quantity equation

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C) illustrate the impact of an expansionary monetary policy on the inflation rate and the price level. Also do explain how the transition process works from the initial equilibrium to the final equilibrium.

  

d: What is meant by the phrase “Money is neutral in the long run”? (in other words, what is monetary neutrality?). Explain by using the quantity equation 

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