Multiple Choice
According to the classical view,
A) velocity is constant, which means changes in price will cause changes in price or quantity.
B) quantity is constant, which means changes in the money supply could cause either changes in velocity or changes in prices.
C) velocity and price are constant so that changes in the money supply causes changes in quantity.
D) velocity and quantity are constant so that changes in the money supply cause changes in prices.
E) velocity is constant while quantity is variable so that changes in the money supply change both price and quantity.
Correct Answer:
Verified
Correct Answer:
Verified
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