Multiple Choice
The simple quantity theory of money predicts that an increase in M of 5 percent will lead to
A) an increase in P of 5 percent.
B) an increase in P of less than 5 percent.
C) an increase in P of more than 5 percent.
D) a decrease in P of 5 percent.
E) a decrease in P of more than 5 percent.
Correct Answer:
Verified
Correct Answer:
Verified
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