The Quantity Theory of Money Suggests That Changes in the Money

question 115

Multiple Choice

The quantity theory of money suggests that changes in the money supply have direct effects on

• A) real GDP.
• B) consumption.
• C) investment.
• D) inflation.
• E) the velocity of money.

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Definitions:

Vestibule

An entryway or antechamber leading to the main part of a building, or the central cavity of the labyrinth of the inner ear.

Auditory Ossicles

The three small bones in the middle ear that transmit sound vibrations from the eardrum to the inner ear.

Endolymph

Fluid found within the membranous labyrinth of the inner ear.

Perilymph

The fluid that lies between the membranous and bony labyrinth of the inner ear, aiding in hearing and balance.