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According to the Quantity Theory of Money, an Increase in the Quantity

Question 85

Multiple Choice

According to the quantity theory of money, an increase in the quantity of money will increase the price level,


A) increase real GDP, but decrease the velocity of circulation.
B) decrease real GDP, and increase the velocity of circulation.
C) but have no effect on real GDP or the velocity of circulation.
D) have no effect on real GDP, and will decrease the velocity of circulation.
E) increase real GDP, and increase the velocity of circulation.

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