The Classical Quantity Theory of Money States That

question 134

Multiple Choice

The classical quantity theory of money states that

• A)money is a medium of exchange necessary for the efficient functioning of the economy.
• B)increases in the stock of money result in greater increases in the price level.
• C)decreases in the stock of money increase the price level.
• D)increases in the stock of money result in proportionate increases in the price level.

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