This question is about Money Neutrality a. Discuss what is Money Neutrality (the concept) and illustrate it on the IS-LM diagram (consider a rise in Ms). You do not need to explain the transmission mechanism of the rise in Ms; the focus should be on the concept of monetary policy only. b. Discuss what Keynesian Theory argues with respect to Money Neutrality and compare it to what Classical Theory states about Money Neutrality

[5 points] This question is about Money Neutrality a. Discuss what is Money Neutrality (the concept) and illustrate it on the ISLM diagram (consider a rise in Ms). You do not need to explain the transmission mechanism of the rise in Ms; the focus should be on the concept of monetary policy only. b. Discuss What Keynesian Theory argues with respect to Money Neutrality and compare it to what Classical Theory states about Money Neutrality