The neutrality of money refers to the idea that: a) a change in money supply has no impact on output over any time period. b) a change in money supply has no short run impact on output. c) the real quantity of money is constant in the long term. 2. a) only the central bank can create money. b) commercial banks can create credit. c) all UK currency is backed by central bank holdings of gold. 3. a) UK currency is a commercial bank liability. b) UK currency is a Bank of England liability. c) UK currency is a central bank asset.
The neutrality of money refers to the idea that: a) a change in money supply has no impact on output over any time period. b) a change in money supply has no short run impact on output. c) the real quantity of money is constant in the long term. 2. a) only the central bank can create money. b) commercial banks can create credit. c) all UK currency is backed by central bank holdings of gold. 3. a) UK currency is a commercial bank liability. b) UK currency is a Bank of England liability. c) UK currency is a central bank asset.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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1. The neutrality of money refers to the idea that:
a) a change in money supply has no impact on output over any time period.
b) a change in money supply has no short run impact on output.
c) the real quantity of money is constant in the long term.
2.
a) only the central bank can create money.
b) commercial banks can create credit.
c) all UK currency is backed by central bank holdings of gold.
3.
a) UK currency is a commercial bank liability.
b) UK currency is a Bank of England liability.
c) UK currency is a central bank asset.
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