The Quantity Theory of Money Predicts That, in the Long

question 18

Multiple Choice

The quantity theory of money predicts that, in the long run, inflation results from the

• A)velocity of money growing at a faster rate than real GDP.
• B)velocity of money growing at a lower rate than real GDP.
• C)money supply growing at a lower rate than real GDP.
• D)money supply growing at a faster rate than real GDP.
• E)price level growing at a faster rate than money supply.