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Which Statement About the Quantity Theory of Money Is False

Question 103

Multiple Choice

Which statement about the quantity theory of money is false?


A) There must be enough money, multiplied by velocity, to allow sales of nominal GDP.
B) All inflation is directly caused by increases in the quantity of money.
C) All inflation is accompanied by increases in the quantity of money.
D) There must be enough money, multiplied by velocity, to allow sales of all final products and services produced.
E) The quantity theory of money is behind the claim that "printing money causes inflation."

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