Multiple Choice
The quantity theory of money states that if the velocity of money is stable or at least predictable,then:
A) the quantity of money in circulation determines real GDP in the short run.
B) the quantity of money in circulation determines aggregate spending.
C) the quantity of money in circulation determines both real GDP and the price level in the long run.
D) the quantity of money in circulation determines only the price level in the long run.
E) the quantity of money in circulation determines the potential output in the long run.
Correct Answer:
Verified
Correct Answer:
Verified
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