An Assumption of the Quantity Theory of Money Is That

question 131

Multiple Choice

An assumption of the quantity theory of money is that the velocity of money:

• A) remains relatively constant.
• B) rises with increases in the money supply.
• C) rises with increases in real GDP.
• D) rises with increases in the price level.

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Definitions:

Aggregate Planning

Involves developing, analyzing, and maintaining a preliminary, approximate schedule of the overall operations of an organization.

Demand Information

Data regarding customer requirements for products or services, used for planning production and inventory levels.

Bullwhip Effect

A phenomenon in supply chain management where small variations in demand at the retail level cause increasingly larger variations in demand at the wholesale, distributor, and manufacturer levels.

CPFR

Collaborative Planning, Forecasting, and Replenishment, a business practice where supply chain partners share information and resources to better predict demand and optimize supply.