According to the Quantity Theory of Money,deflation Will Occur If

question 228

Multiple Choice

According to the quantity theory of money,deflation will occur if the

• A)money supply is less than real GDP.
• B)money supply is more than real GDP.
• C)money supply grows at a slower rate than real GDP.
• D)money supply grows at a faster rate than real GDP.

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Definitions:

Secondary Effects

Unintended consequences or outcomes that arise from a primary action or decision.

Unintended Consequences

Outcomes that are not the ones foreseen and intended by a purposeful action, often contrary to the original intentions.

Economic Change

Alterations in the structure, performance, or state of an economy over a period, influenced by policy, innovation, and external factors.

Secondary Effects

The indirect impact of an action or policy, which may occur as a ripple effect beyond the immediate or primary effects.