Multiple Choice
The quantity theory of money assumes that the velocity of money:
A) increases with the quantity of money in the economy.
B) decreases with the quantity of money in the economy.
C) is relatively stable.
D) is difficult to predict.
Correct Answer:

Verified
Correct Answer:
Verified
Related Questions
Q18: Because of money illusion,inflation usually confuses:<br>A) consumers.<br>B)
Q77: Money is neutral in the long run
Q86: Suppose real GDP and velocity of money
Q138: Inflation refers to an increase in the:<br>A)
Q225: The velocity of money is:<br>A) how fast
Q226: In a small economy, the level of
Q228: Use the following to answer questions:
Q229: The situation in which the government pays
Q232: If the money supply is $375 million,
Q235: Which of the following identities represents the