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:

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The last phase or part of a process, often implying the culmination or conclusion of something.

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