According to Crude Versions of the Quantity Theory of Money

question 263

Multiple Choice

According to crude versions of the quantity theory of money

• A)the money supply determines the real interest rate in equilibrium.
• B)the general price level is determined strictly by the real costs of production.
• C)the general price level is exactly proportional to the money supply in equilibrium.
• D)increases in the money supply will increase output and employment in the long run.

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