The Quantity Theory of Money Asserts That Inflation Is the Result

question 42

Multiple Choice

The quantity theory of money asserts that inflation is the result of growth in

• A) the quantity of money.
• B) potential GDP.
• C) the natural rate of unemployment.
• D) money wage rates.

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Definitions:

Special Revenue Fund

A fund used by governments to account for revenue sources that are restricted or committed to expenditure for specified purposes other than debt service or capital projects.

Decrease in Financial Resources

A reduction in the amount of money, assets, or other financial means available to an individual or organization.

General Fund

A central and primary operating fund of a government, covering general operating expenses and services.

Accounting Records

Documentation and books that record all of the financial transactions of a business.