For the Quantity Theory of Money to Yield Useful Predictions

question 197

Multiple Choice

For the quantity theory of money to yield useful predictions,

• A)fiscal policy must be ineffective in altering aggregate demand
• B)fiscal policy must be effective in altering aggregate demand
• C)the economy must be operating at the potential level of real Gross Domestic Product
• D)velocity must be stable or predictable
• E)velocity must be unstable

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