According to the Quantity Theory, in the Long Run, an Increase

question 237

Multiple Choice

According to the quantity theory, in the long run, an increase in the growth rate of ________ leads to an increase in the ________.

• A) real GDP; inflation rate
• B) the quantity of money; growth rate of real GDP
• C) the quantity of money; inflation rate
• D) real GDP; growth rate of velocity

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Definitions:

Fluidotherapy

A technique for stimulating healing, particularly in the hands and feet, by placing the affected body part in a container of glass beads that are heated and agitated with hot air.

Whirlpool

A rapidly rotating mass of water in a river or sea into which objects may be drawn, typically caused by the meeting of conflicting currents.

Thermotherapy

The application of heat to the body to treat a disorder or injury.

Muscle Spasms

Sudden, involuntary contractions of a muscle or group of muscles, often causing pain or discomfort.