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What Does the Quantity Theory of Money State

Question 76

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What does the quantity theory of money state?  


A)  Fiscal policy plays an important role in determining economic activity. 
B)  The quantity of money in circulation determines aggregate spending. 
C)  The quantity of money in circulation determines only the price level in the long run. 
D)  The quantity of money in circulation determines only real spending in the short run.

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