The Quantity Theory of Money Asserts That an Increase in the Quantity

question 307

Multiple Choice

The quantity theory of money asserts that an increase in the quantity of money

• A) will decrease the price level by an offsetting amount.
• B) by n percent will lead to an increase in the price level by n + 1 percent.
• C) will lead to an equal percentage increase in real GDP.
• D) will lead to an equal percentage increase in the price level.

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Definitions:

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