According to the Quantity Theory of Money, an Excess Quantity

question 6

Multiple Choice

According to the quantity theory of money, an excess quantity of money supplied will lead to

• A) a reduction in spending and higher interest rates.
• B) a reduced level of real Gross Domestic Product (GDP).
• C) a higher level of employment.
• D) a higher price level.

---

Definitions:

Conformity

The act of matching attitudes, beliefs, and behaviors to group norms, policies, or societal expectations.

Behavior

Everything we do that can be directly observed.

Social Facilitation Effect

The tendency for people to perform differently when in the presence of others, usually better on well-practiced tasks and worse on new tasks.

Genetic Predisposition

The inherent susceptibility to certain conditions or characteristics based on one's genetic makeup.