Under a System of Flexible Exchange Rates, Monetary Expansion Is

Under a system of flexible exchange rates, monetary expansion is entirely neutral in the long run.In other words, the long-run effect of monetary expansion is that

A) nominal money supply, prices, and the nominal exchange rate all increase proportionally
B) real money balances are not affected
C) relative prices, including the real exchange rate, are not affected
D) real output and the level of unemployment are not affected
E) all of the above

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