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The "Quantity Theory of Money" Was Employed by Classical Macroeconomists

Question 61

Multiple Choice

The "quantity theory of money" was employed by Classical macroeconomists to predict changes in the price level.Changes in P were forecast to be


A) proportional to changes in the money supply.
B) inversely proportional to changes in velocity.
C) proportional to changes in natural real GDP.
D) inversely proportional to changes in real GDP.

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