Using the Quantity Theory of Money, We Can Calculate Inflation $\pi _ { t } = \% \Delta \bar { M } _ { t }$

Multiple Choice

Using the quantity theory of money, we can calculate inflation using ________, under the assumption that ________.

A) $\pi _ { t } = \% \Delta \bar { M } _ { t }$ ; velocity is constant
B) $\pi _ { t } = \% \Delta \bar { M } _ { t } - \% \Delta \bar { Y } _ { t }$ ; percent change in velocity always equals one
C) $\pi _ { t } = \% \Delta \bar { M } _ { t } - \% \Delta \bar { Y } _ { t }$ ; velocity is constant
D) $\pi _ { t } = \% \Delta \bar { Y } _ { t }$ ; velocity is variable
E) $\pi _ { t } = 0$ ; velocity is constant