According to the Quantity Theory of Money, an Increase in the Money

question 89

Multiple Choice

According to the quantity theory of money, an increase in the money supply leads to:

• A) an increase in prices, as there are more dollar bills spent on the same number of goods and services.
• B) an increase in prices, as there are the same dollar bills spent on a greater number of goods and services.
• C) a decrease in prices, as there are more dollar bills spent on the same number of goods and services.
• D) a decrease in price, as there are the same dollar bills spent on a greater number of goods and services.

---

Definitions:

Global Poverty

The condition of lacking necessary financial resources and basic needs on a worldwide scale, affecting billions of individuals in various countries, especially in developing regions.

Transnational Corporation

A massive enterprise that operates and manages production or delivers services in more than one country.

International Monetary Fund

An international organization created to promote global monetary cooperation, secure financial stability, facilitate international trade, and reduce poverty around the world.

World Bank

An international monetary body that supplies loans and grants to the administrations of less wealthy nations for capital project development.