The Quantity Theory of Money Is the Idea That in the Long

question 228

Multiple Choice

The quantity theory of money is the idea that in the long run

• A) the quantity of money determines real GDP.
• B) the quantity of money is determined by banks.
• C) an increase in the growth rate of the quantity of money leads to an equal increase in the inflation rate.
• D) the quantity of money serves as a good indicator of how well money functions as a store of value.

---

Definitions:

Russian Ruble

The official currency of the Russian Federation, symbolized by RUB, and used within its economic transactions.

U.S. Dollar

The official currency of the United States, widely used as a standard of exchange in international transactions.

Brazilian Real

The official currency of Brazil, represented by the symbol R$ and subdivided into 100 centavos.

U.S. Currency

The currency issued by the United States, primarily consisting of banknotes and coins denominated in dollars and cents.