Multiple Choice
The quantity theory of money states that in the long run
A) the price level will not consistently rise, it will fluctuate.
B) an increase in the quantity of money results in an equal percentage increase in the price level.
C) a rise in the price level rises causes the quantity of money to increase.
D) an increase in the quantity of money increases real GDP by a smaller percentage.
Correct Answer:
Verified
Correct Answer:
Verified
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