According to the Quantity Theory of Money, Which One of the Following

question 175

Multiple Choice

According to the quantity theory of money, which one of the following economic variables would change in response to an increase in the money supply?

• A) prices
• B) real income
• C) velocity
• D) employment

---

Definitions:

Accounts Payable

The amount of money a company owes to suppliers or creditors for goods and services received but not yet paid for.

Merchandise Inventory

Goods held for sale by a business, typically in a retail or wholesale setting, valued at either cost or market price.

Building Contractors

Businesses or individuals that oversee the construction of buildings or structures, managing materials, labor, and compliance with regulations.

Monthly Depreciation

The portion of the cost of a tangible fixed asset that is considered consumed or used up in the operations of a business each month.