The Quantity Theory of Money Asserts That

question 109

Multiple Choice

The quantity theory of money asserts that:

• A)changes in nominal GDP are inversely related to changes in the velocity of money.
• B)changes in money supply are positively related to changes in the velocity of money.
• C)changes in the money supply are unrelated to changes in the price level.
• D)changes in the output level are unrelated to changes in the price level.
• E)changes in the money supply are directly related to changes in nominal GDP.

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