Which of the Following Statements Is NOT Consistent with the Quantity

question 107

Multiple Choice

Which of the following statements is NOT consistent with the quantity theory of money?

• A)The velocity of money can be affected by how frequently workers are paid.
• B)The velocity of money can be affected by the development of new financial instruments,such as interest-bearing checking accounts.
• C)The velocity of money can be affected by the manner in which the banking system clears transactions between banks.
• D)Velocity can change with changes in the interest rate.

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