Economics · Macroeconomics
The classical neutrality proposition implies that the level of:
- 1Interest rate will be dependent on nominal variables only
- 2Nominal output will be independent of the quantity of money in the economy
- 3Real output will be dependent on the quantity of money in the economy
- 4Real output will be independent of the quantity of money in the economy✓
Correct answer
Real output will be independent of the quantity of money in the economy
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