According to the Quantity Theory of Money, the Price Level

question 38

True/False

According to the quantity theory of money, the price level is determined by the ratio of the effective quantity of money to the volume of goods.

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Definitions:

Homeopathy

A 200-year-old system of medicine based on the Law of Similars. This means that if a dose of a substance can cause a symptom, that same substance in minuscule amounts can cure the symptom.

Law of Similars

A principle in homeopathy suggesting that substances causing symptoms in healthy people can treat similar symptoms in sick people.

Symptom

A physical or mental feature that is regarded as indicating a condition of disease, particularly such a feature noticed by the patient.

Substance

Material with particular physical characteristics or chemical composition.