Multiple Choice
If long-run real GDP growth is determined by real changes in the economy, the quantity theory of money implies that:
A) changes in the money growth rate lead one-for-one to changes in the inflation rate in the long run
B) changes in the money growth rate lead one-for-one to changes in the inflation rate but only in the short run
C) changes in velocity lead one-for-one to changes in the inflation rate
D) changes in the money growth rate lead to a greater than one-for-one change in the inflation rate in the long run
E) None of these answers are correct.
Correct Answer:
Verified
Correct Answer:
Verified
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