Other Things Being Equal, the Quantity Theory of Money Suggests

question 314

Multiple Choice

Other things being equal, the quantity theory of money suggests that any increase in the money supply

• A) causes a reduction in the demand for money.
• B) results in a decrease in the aggregate price level.
• C) causes the aggregate level of nominal Gross Domestic Product (GDP) to fall.
• D) results in a proportionate increase in the price level.

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Definitions:

Expensive Bidder

A term that does not correspond to a specific widely recognized concept in business or economics, thus NO.