The Quantity Theory of Money Implies That the Price Level

question 51

Multiple Choice

The quantity theory of money implies that the price level will be stable (no inflation or deflation) when the growth rate of the money supply equals

• A)0.
• B)the growth rate of the price level.
• C)the growth rate of the velocity of money.
• D)the growth rate of real GDP.
• E)the growth rate of real GDP times the current price level.

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