The Quantity Theory of Money

question 167

Multiple Choice

The quantity theory of money

• A)states that fiscal policy plays an important role in determining economic activity
• B)states that the quantity of money in circulation determines aggregate spending
• C)argues that velocity is unpredictable
• D)states that the quantity of money in circulation determines only the price level in the long run
• E)states that the quantity of money in circulation determines only real spending in the short run

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Definitions:

Japanese School Teachers

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Sternberg's Triarchic Theory

A theory of intelligence proposing that human intelligence comprises three aspects: analytical, creative, and practical.

Metacognitive Intelligence

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Cultural Intelligence

The capability to relate and work effectively across cultures.