The Quantity Theory of Money Asserts That Changes in

question 77

Multiple Choice

The quantity theory of money asserts that changes in

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

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Definitions:

Motives

Internal processes that energize, direct, and sustain behavior towards fulfilling a need or achieving a goal.

Needs

Something that is necessary to survive or thrive.

Need

A requirement essential for an organism's survival, growth, or well-being.

Physiological Needs

Basic physical requirements including air, water, food, shelter, and sleep, necessary for human survival.