Which Statement About the Quantity Theory of Money Is False

question 103

Multiple Choice

Which statement about the quantity theory of money is false?

• A) There must be enough money, multiplied by velocity, to allow sales of nominal GDP.
• B) All inflation is directly caused by increases in the quantity of money.
• C) All inflation is accompanied by increases in the quantity of money.
• D) There must be enough money, multiplied by velocity, to allow sales of all final products and services produced.
• E) The quantity theory of money is behind the claim that "printing money causes inflation."

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