According to the Quantity Theory of Money

question 15

Multiple Choice

According to the quantity theory of money,

• A)real national income is directly related to changes in the money supply in the long run.
• B)velocity varies indirectly with the rate of growth of the money supply.
• C)a proportionate increase in the money supply leads to a less than proportionate increase in real national income,at least in the long run.
• D)a proportionate increase in the money supply leads to a proportionate increase in the price level.

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Definitions:

Co-insurance Clause

A provision in insurance policies requiring the policyholder to bear a portion of the loss by maintaining coverage of a specified percentage of the value of the property to receive full reimbursement.

Fireproof

The quality of being resistant to or capable of withstanding damage by fire.

Insured

A person or entity covered under an insurance policy, receiving financial protection or reimbursement against losses from an insurance company.

Sculptor

An artist who specializes in creating three-dimensional works of art through carving, modeling, or assembling materials like stone, metal, or wood.