The Quantity Theory of Money Implies That If Output and Velocity

question 24

True/False

The quantity theory of money implies that if output and velocity are constant, then a 50 percent increase in the money supply would lead to less than a 50 percent increase in the price level.

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Definitions:

Monthly Cash Flows

The net amount of cash and cash-equivalents being transferred into and out of a business in a given month.

Delayed

Pertaining to something that has been postponed or set to occur at a later time than originally planned.

Monthly

Pertaining to something that occurs, repeats, or is calculated on a monthly basis.