According to the Quantity Theory of Money,an Increase in the Money

question 58

Multiple Choice

According to the quantity theory of money,an increase in the money supply will cause the price level to:

• A) remain relatively constant since money is neutral.
• B) increase by about the same percentage as the money supply.
• C) increase by a greater percentage than the money supply.
• D) increase by a smaller percentage than the money supply.

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