The Quantity Theory of Money Assumes That Velocity Is Approximately

question 66

True/False

The quantity theory of money assumes that velocity is approximately constant resulting in nominal GDP to be proportional to the money stock.

---

Definitions:

Unsought Product

Products that consumers do not normally think of buying or do not know exist until they are needed or encountered.

Specialty Products

Products that feature unique attributes distinguishing them from others in the market, motivating consumers to make special purchasing efforts.

High Perceived Value

The extent to which a product or service is regarded by a consumer as being worthy or beneficial, often relative to its cost.

Price

Price is the amount of money expected, required, or given in exchange for something else, such as a product or service.