A Reason Why the Quantity Theory of Money Is Problematic

question 85

Multiple Choice

A reason why the quantity theory of money is problematic is that:

• A)money supply increases generally affect only goods prices.
• B)the Fed generally runs expansionary monetary policy.
• C)the velocity of money has fluctuated over time.
• D)real output rises during expansions and falls during contractions.

---

Definitions:

Intergroup Attitudes

Feelings, beliefs, and behaviors oriented towards members of another group, which can range from positive to negative.

Social Deprivation

A condition resulting from a lack of social relationships and interactions, leading to feelings of loneliness and isolation.

In-group-out-group Bias

The tendency to favor members of one's own group over those in other groups, leading to prejudice and discrimination.

Skepticism

A philosophical approach that questions the validity or authenticity of something purported to be factual.