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The Quantity Theory of Money Assumes That the Velocity of Money

Question 76

Multiple Choice

The quantity theory of money assumes that the velocity of money:


A) is constant.
B) will rise if the money supply rises and fall if the money supply falls.
C) will rise if the money supply rises, but it will not change if the money supply falls.
D) will fall if the money supply rises, and it will rise if the money supply falls.

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