Multiple Choice
According to the quantity theory of money,
A) a decrease in the quantity of money will decrease the price level.
B) a decrease in the quantity of money will decrease the velocity of circulation.
C) a change in the discount rate changes real GDP.
D) the only way the Fed can change the quantity of money without affecting the velocity of circulation is by using open market operations.
Correct Answer:
Verified
Correct Answer:
Verified
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