Multiple Choice
Which of the following assumptions is not part of the quantity theory of money?
A) the economy is assumed to be at full employment
B) velocity is assumed to be unpredictable
C) changes in nominal money supply and the price level are assumed to be proportional
D) changes in nominal GDP and nominal money supply are assumed to be proportional
E) inflation is assumed to be caused by too much monetary growth
Correct Answer:
Verified
Correct Answer:
Verified
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