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:

Rate of Return

The gain or loss on an investment over a specified period, expressed as a percentage of the investment's initial cost.

Expenditure

The total amount of money spent by an individual, firm, or government on goods and services.

Innovation

The process of creating new methods, products, or ideas that bring about significant improvements or changes.

Diffusion

The process by which a new idea, product, or practice spreads through a population or society.