The Quantity Theory of Money Argues That, in the Long

question 277

Multiple Choice

The quantity theory of money argues that, in the long run, the percentage change in money will create an equal percentage change in

• A) the velocity of circulation.
• B) real GDP.
• C) potential GDP.
• D) the price level.

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Definitions:

Distribution

Distribution involves the process by which goods or services are made available to consumers through a supply chain, including warehousing, transportation, and retailing.