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If the Simple Quantity Theory of Money Predicts Well,what Would

Question 24

Multiple Choice

If the simple quantity theory of money predicts well,what would we expect to see (in the real world) ?


A) changes in the money supply strongly correlated with changes in interest rates
B) changes in the money supply strongly correlated with changes in inflation rates
C) changes in Real GDP strongly correlated with changes in the money supply
D) changes in velocity strongly correlated with changes in the money supply
E) none of the above

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