Causality Is Clear and Mechanical with the Quantity Theory of Money

question 93

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.