The Quantity Theory of Money Assumes That

question 138

Multiple Choice

The quantity theory of money assumes that

• A)the velocity of money is negative.
• B)the velocity of money is constant.
• C)the velocity of money is zero.
• D)the velocity of money fluctuates unpredictably.

---

Definitions:

Received

To have taken possession or delivery of an item, payment, or communication.

Equivalent

Items or quantities having the same value, function, or meaning, often used in comparisons.

Annually Compounded Rate

The interest rate calculated once per year, taking into account the effect of compounding over that period.

Bank Balance

The total amount of funds in a bank account at a given moment.