Causality Is Clear and Mechanical with the Quantity Theory of Money

question 42

Multiple Choice

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

• A) variable, the price level, P, increases.
• B) variable, the price level, P, decreases.
• C) constant, the price level, P, increases.
• D) constant, the price level, P, decreases.

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