Multiple Choice
The quantity theory of money
A) states that fiscal policy plays an important role in determining economic activity
B) states that the quantity of money in circulation determines aggregate spending
C) argues that velocity is unpredictable
D) states that the quantity of money in circulation determines only the price level in the long run
E) states that the quantity of money in circulation determines only real spending in the short run
Correct Answer:
Verified
Correct Answer:
Verified
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