The Simple Quantity Theory of Money Predicts That an Increase

question 70

Multiple Choice

The simple quantity theory of money predicts that an increase in M of 5 percent will lead to

• A) an increase in P of 5 percent.
• B) an increase in P of less than 5 percent.
• C) an increase in P of more than 5 percent.
• D) a decrease in P of 5 percent.
• E) a decrease in P of more than 5 percent.

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Definitions:

Joint Ownership

Shared ownership of property by two or more parties where all owners have equal rights and obligations regarding the property.

Right Of Way

A type of easement that allows the crossing of another’s land.

Prescription

An authorized written instruction from a medical practitioner for the preparation and administration of a medicine or medical device.

Habitual Use

Frequent and regular use of something, often implying dependence or a pattern that is hard to break.