The Quantity Theory of Money Begins with the Equation Containing

Multiple Choice

The quantity theory of money begins with the equation containing the money supply (M) , velocity of money (V) , average prices (P) and real GDP (Q) , and then assumes that

A) M does not change when V changes.
B) V does not change when Q changes.
C) V is fixed and Q is fixed at potential GDP.
D) V is fixed and Q is fixed at real GDP.
E) V is fixed and Q is fixed at nominal GDP.