What Assumptions Are Necessary to Argue That the Quantity Equation

question 55

Essay

What assumptions are necessary to argue that the quantity equation implies that increases in the money supply lead to proportional changes in the price level?

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Definitions:

Experimenter Bias

The influence of the experimenter's expectations or personal beliefs on the outcome of a study, potentially skewing the results.

Subjects' Behaviour

Examination of how research participants act or respond during experiments or studies.

Hypothesis

A proposed explanation for a phenomenon, based on previous observations, that can be tested through experimentation or observation.

Objective Manner

Acting or making decisions based on unbiased criteria and facts rather than personal feelings or opinions.