Causality Is Clear and Mechanical with the Quantity Theory of Money

question 232

Multiple Choice

Causality is clear and mechanical with the quantity theory of money. If M increases because:

• A) V and Q are variable, the price level, P, increases.
• B) V and Q are variable, the price level, P, decreases.
• C) V and Q are constant, the price level, P, increases.
• D) V and Q are constant, the price level, P, decreases.
• E) P and Q are constant, velocity, V, increases.

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Definitions:

Transactional Function

Activities involved in transferring ownership or physical possession of goods from one party to another.

Facilitating Function

Activities that help in the smooth transaction of goods and services from producers to consumers, such as transportation and storage.

Product Assortments

The range or variety of product lines and individual products that a company offers for sale to its target market.

Channel Intermediaries

Businesses or individuals that act as intermediaries within the distribution channel, facilitating the movement of goods from manufacturers to consumers.