Which of the Following Assumptions Is Not Part of the Quantity

question 36

Multiple Choice

Which of the following assumptions is not part of the quantity theory of money?

• A)the economy is assumed to be at full employment
• B)velocity is assumed to be unpredictable
• C)changes in nominal money supply and the price level are assumed to be proportional
• D)changes in nominal GDP and nominal money supply are assumed to be proportional
• E)inflation is assumed to be caused by too much monetary growth

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