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    Principles of Macroeconomics Study Set 8
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    Exam 17: Money Growth and Inflation: The Classical Theory of Inflation
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    Suppose That M Is Fixed but That P Falls
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Suppose That M Is Fixed but That P Falls

Question 115

Question 115

Multiple Choice

Suppose that M is fixed but that P falls.According to the quantity equation which of the following could both by themselves explain the decrease in P?


A) Y rose,V rose
B) Y fell,V fell
C) Y rose,V fell
D) Y fell,V rose

Correct Answer:

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