The Essence of the Quantity Theory of Money Is That

question 63

Multiple Choice

The essence of the quantity theory of money is that:

• A) the price level is indeterminate.
• B) in the long run, the only determinant of the price level is the money supply.
• C) in the long run, a key determinant of the price level is the money supply.
• D) only the central bank knows what the price level is.
• E) money cannot pin down the price level.

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