Which of the Following Statements Is Not Consistent with the Quantity

question 23

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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Definitions:

Response-Based Definition

A method of defining concepts by specifying the response or outcome they produce, rather than the characteristics they possess.

Stress

A feeling of emotional or physical tension resulting from any event or thought that makes you feel frustrated, angry, or nervous.

Physiological Reaction

Bodily responses to stimuli, including changes in heart rate, hormone levels, and muscle tension.

Fight-Or-Flight

A physiological response to perceived harmful events, attacks, or threats to survival, priming the body to either confront or flee.