The Quantity Theory of Money Asserts That an Increase in the Quantity

question 307

Multiple Choice

The quantity theory of money asserts that an increase in the quantity of money

• A) will decrease the price level by an offsetting amount.
• B) by n percent will lead to an increase in the price level by n + 1 percent.
• C) will lead to an equal percentage increase in real GDP.
• D) will lead to an equal percentage increase in the price level.

---

Definitions:

Gift Certificate

A document or electronic card, often purchased, that allows the holder to exchange it for goods or services worth a specified amount.

Unconditioned Response

An automatic, unlearned reaction to an unconditioned stimulus, such as salivating in response to food, in classical conditioning paradigms.

Meat Powder

A substance used by Ivan Pavlov in his classical conditioning experiments as an unconditioned stimulus to elicit an unconditioned salivation response in dogs.

Salivation

The production and release of saliva in the mouth, often in response to the sight, smell, or taste of food.