According to the Quantity Theory of Money, Which One of the Following

question 175

Multiple Choice

According to the quantity theory of money, which one of the following economic variables would change in response to an increase in the money supply?

• A) prices
• B) real income
• C) velocity
• D) employment

---

Definitions:

Action Potential

A rapid, temporary reversal in the electrical polarization of the membrane of a nerve cell or muscle cell, enabling the transmission of signals.

Cell Membrane

A biological membrane that separates the interior of all cells from the outside environment, providing structure and protection.

Neurotransmitter Receptor Site

A specific molecular site on the surface of a neuron where neurotransmitters bind to trigger a response in the neuron.

Agonist

A chemical or drug that binds to receptors in the body and causes a physiological response similar to the natural substance.