The Quantity Theory of Money States That in the Long

question 227

Multiple Choice

The quantity theory of money states that in the long run

• A) an increase in the quantity of money increases real GDP by a smaller percentage.
• B) the price level will not consistently rise, it will fluctuate.
• C) a rise in the price level rises causes the quantity of money to increase.
• D) an increase in the quantity of money results in an equal percentage increase in the price level.

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Definitions:

Memory For Actions

The ability to remember and perform tasks or actions, often referred to as procedural or implicit memory.

Autobiographical Memory

A type of memory system consisting of episodes recollected from an individual's life, based on a combination of episodic (personal experiences and specific objects, people, and events experienced at particular time and place) and semantic (general knowledge and facts about the world) memory.

First Autobiographical Memories

The earliest memories that individuals can recall about their own life, typically from early childhood.

Autobiographical Memory

The aspect of memory that involves the recollection of personal experiences and events in one's life.