The Quantity Theory of Money ________

question 67

Multiple Choice

The quantity theory of money ________.

• A)implies that inflation equals the ratio of the growth rates of the money supply and of real income
• B)provides central banks with a tool to prevent the rate of inflation from fluctuating
• C)implies that,in the long run,changes in the money supply will be matched by changes in real income
• D)all of the above
• E)none of the above

---

Definitions:

StdDev

Standard Deviation, a measure of the amount of variation or dispersion in a set of values.

Median

The central number in a series that divides the upper half from the bottom half.

StdDev

A rephrased term for standard deviation, indicating the degree to which individual data points in a set diverge from the mean value.

Mean

A mathematical average of a set of numbers, calculated by adding them all together and dividing by the number of numbers.