The Simple Quantity Theory of Money Assumes That

question 145

Multiple Choice

The simple quantity theory of money assumes that

• A) velocity and Real GDP are constant.
• B) only velocity is constant.
• C) only the money supply is constant.
• D) only the price level is constant.

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Definitions:

Critical Thinking

The objective analysis and evaluation of an issue in order to form a judgment.

Case Law

Law established by judicial decisions in particular cases, instead of by legislative statutes or executive actions.

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A body of rules, agreements, and treaties that are legally binding between countries, governing their conduct and relations on a global scale.

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