The Quantity Theory of Inflation Indicates That the Inflation Rate

question 62

Multiple Choice

The quantity theory of inflation indicates that the inflation rate equals

• A)the growth rate of the money supply minus the growth rate of aggregate output.
• B)the level of the money supply minus the level of aggregate output.
• C)the growth rate of the money supply plus the growth rate of aggregate output.
• D)the level of the money supply plus the level of aggregate output.

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