The idea that the money supply does not affect real economic variables is called:
a) adaptive expectations theory.
b) monetary neutrality.
c) the Phillips curve.
d) contractionary monetary policy.
e) expansionary monetary policy.

The correct answer is letter "B": monetary neutrality.

Explanation:

Austrian economist Friedrich A. Hayek (1899-1992) referred to monetary neutrality as a theory that states the changes in the money supply do not affect the prices of goods, services, wages but no the economy as a whole. According to Hayek, printing more money could increase the demand affecting some economic variables (such as the mentioned above), but in the long run, it does not have a relevant impact.

answer; measurable outcome;

answer; buying the bill at a discount from the face value to be received at maturity;