Which Statement Is Most Consistent with the Quantity Theory of Money

question 137

Multiple Choice

Which statement is most consistent with the quantity theory of money?

• A) expectations cause inflation
• B) rising oil prices cause inflation
• C) increases in wages cause inflation
• D) rising money supply causes inflation
• E) what goes around comes around

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Definitions:

Countertrade

A method of trade in which goods or services are exchanged directly for other goods or services without the use of money.

Foreign Exchange

The exchange of one currency for another or the conversion of one currency into another currency.

Labor-intensive Exports

Refers to goods or products that require a significant amount of manual labor to produce, which are then sold to other countries.

Leading Exporter

A country or company that is one of the foremost suppliers of goods or services to markets outside its own borders.