According to the Quantity Theory of Money, an Increase in the Quantity

question 71

Multiple Choice

According to the quantity theory of money, an increase in the quantity of money will increase the price level

• A)but have no effect on real GDP or the velocity of circulation.
• B)and increase real GDP and the velocity of circulation.
• C)and increase real GDP but decrease the velocity of circulation.
• D)and decrease real GDP and increase the velocity of circulation.
• E)but have no effect on real GDP and will decrease the velocity of circulation.

---

Definitions:

Right-to-Work Laws

Right-to-Work Laws prevent unions and employers from requiring union membership for employment, enhancing individual freedom to choose.

National Labor Relations Board

An independent U.S. federal agency created to enforce labor laws concerning collective bargaining and unfair labor practices, ensuring employees' rights to organize and bargain collectively are protected.

Employee Empowerment

Giving employees responsibility and authority to make decisions regarding all aspects of product development or customer service.

Financial Constraints

Limitations on the availability or use of financial resources that affect an individual's or organization's ability to make decisions or transactions.