The quantity theory asserts that real GDP is
A) not influenced by the quantity of money.
B) never different from potential GDP.
C) equal to nominal GDP divided by the quantity of money.
D) equal to nominal GDP multiplied by the quantity of money.

Question

Quizplus · Accepted Answer

The quantity theory of money suggests that real GDP is determined by factors other than the quantity of money, such as technology and resources, and is not directly influenced by changes in the money supply.

The Quantity Theory Asserts That Real GDP Is