The Quantity Theory of Money States That in the Long

Multiple Choice

The quantity theory of money states that in the long run

A) an increase in the quantity of money increases real GDP by a smaller percentage.
B) the price level will not consistently rise, it will fluctuate.
C) a rise in the price level rises causes the quantity of money to increase.
D) an increase in the quantity of money results in an equal percentage increase in the price level.