According to the Quantity Theory of Money,if the Money Supply

question 2

Multiple Choice

According to the quantity theory of money,if the money supply is increased by 1.5 times while velocity remains constant,the new price level will:

• A)fall to half its initial level.
• B)fall, but it will not fall all the way to half its initial level.
• C)increase, but it will not double.
• D)increase by 1.5 times.
• E)more than double.

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