Multiple Choice
Which of the following statements is false?
A) The exchange equation assumes that velocity is constant.
B) Velocity is the average number of times a dollar is spent to buy final goods and services in a year.
C) The simple quantity theory of money predicts that changes in the money supply lead to strictly proportional changes in the price level.
D) In the simple quantity theory of money the aggregate supply curve is vertical.
Correct Answer:
Verified
Correct Answer:
Verified
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