Multiple Choice
According to the quantity theory of money, if an economy produces 5,000 units of output, its money supply equals $40,000 and the velocity of money equals one, then the price level will equal:
A) $0.13.
B) $1.25.
C) $8.
D) $200.
E) $8,000.
Correct Answer:
Verified
Correct Answer:
Verified
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