According to the Quantity Theory of Money, in the Long

question 77

Multiple Choice

According to the quantity theory of money, in the long run

• A) an increase in the quantity of money creates an increase the price level but no increase in real GDP.
• B) the quantity of money in the economy will always be just the right amount.
• C) an increase in the quantity of money creates an increase in the price level and in real GDP.
• D) None of the above answers are correct.

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Definitions:

Photon

A quantum of electromagnetic radiation, often regarded as a discrete particle of light with zero rest mass and energy dependent on its frequency.

Particle Nature

The characteristic of matter to exhibit properties of particles, including mass and discrete boundaries, observable in phenomena like the photoelectric effect.

Wave Nature

Wave Nature relates to the characteristics of particles, such as photons and electrons, to exhibit properties typical of waves, including interference and diffraction.

Blue Irises

Refers to a physical trait where the irises of the eyes have a blue pigment.