The equation of exchange becomes the same as the quantity theory of money by assuming that the velocity of circulation________ when the quantity of money changes and potential GDP________ when the quantity of money changes.
A) does not change; does not change
B) changes; changes
C) does not change; changes
D) changes; does not change
Correct Answer:
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Q404: The quantity of money in an economy
Q405: Which of the following equations represents the
Q406: In the quantity theory of money, the
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Q408: If an economy has a velocity of
Q410: When the velocity of circulation equals 4
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Q412: The velocity of circulation is
A) average quantity
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Q414: According to the quantity theory of money,
A)
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