Good job, Naomi, Jorge, Alexus, Maggie, Justin, Stacy, Kairlin, and Benjamin. Over the past few months most of us received a $1200 stimulus check from the government. Thats a huge injection of cash from the nations reserves, a big increase in the money supply. According to the logic of monetary neutrality, what will be the short run effects on real variables? On nominal variables? Will it be the same in the long run?
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