According to the Quantity Theory of Money, If the Money

question 66

Multiple Choice

According to the quantity theory of money, if the money supply is increased by 1.5 times while velocity remains constant, the new price level will:

• A) fall to half its initial level.
• B) fall, but it will not fall all the way to half its initial level.
• C) increase, but it will not double.
• D) increase by 1.5 times.

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