The dichotomy between monetary and real sphere according to the Neoclassical view implies that money plays an important role in the real economy money is neutral; it does not have an important effect on the real sphere money has the three functions: as a medium of exchange, unit of account and store of value money supply can be measured as M1, M2 or M3
The dichotomy between monetary and real sphere according to the Neoclassical view implies that money plays an important role in the real economy money is neutral; it does not have an important effect on the real sphere money has the three functions: as a medium of exchange, unit of account and store of value money supply can be measured as M1, M2 or M3
Chapter1: Making Economics Decisions
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![The dichotomy between monetary and real sphere according to the Neoclassical view
implies that
money plays an important role in the real economy
money is neutral; it does not have an important effect on the real sphere
money has the three functions: as a medium of exchange, unit of account and
store of value
money supply can be measured as M1, M2 or M3](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fac8131b7-6e70-4d19-8318-0ff86405c273%2F864a65dd-e932-44eb-a54f-0e5d12fad9e6%2Fac7nxc8_processed.jpeg&w=3840&q=75)
Transcribed Image Text:The dichotomy between monetary and real sphere according to the Neoclassical view
implies that
money plays an important role in the real economy
money is neutral; it does not have an important effect on the real sphere
money has the three functions: as a medium of exchange, unit of account and
store of value
money supply can be measured as M1, M2 or M3
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