According to the theory of “money neutrality” which of the following statements is likely to be true?
a.
When the money supply is increased, real wage rates will rise.
b.
When the money supply is increased, real interest rates will fall.
c.
When the money supply is increased, real GDP will increase.
d.
When the money supply is increased, real wage rates will fall.
e.
When the money supply is increased, nominal wage rates will rise.