The Quantity Theory of Money ________

question 30

Multiple Choice

The quantity theory of money ________.

• A)focuses mainly on the close link between short run fluctuations in velocity and the price level
• B)works very well for the U.S.but it does not hold empirically for other countries in the long run
• C)provides a long run theory of inflation because it is based on the assumption that prices and wages are fully flexible
• D)all of the above
• E)none of the above

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Definitions:

Commitment

A pledge or promise to do something; the state of being dedicated to a cause, activity, or goal.

Compliance

Partial success of an influence attempt by a leader: The person makes a modest effort.

Resistance

The state that occurs when an influence attempt by a leader is unsuccessful: The target is opposed to carrying out the request and finds ways to either not comply or do a poor job.

Good-natured Kidding

Light-hearted teasing or joking among individuals in a friendly and well-intentioned manner.