According to the Simple Quantity Theory of Money,if the Money

question 106

Multiple Choice

According to the simple quantity theory of money,if the money supply falls by 20 percent,

• A) the price level will fall by 20 percent.
• B) Real GDP will rise by less than 20 percent.
• C) GDP will fall by 20 percent.
• D) velocity will rise.
• E) a and c

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