According to the quantity theory of money, money growth and inflation are
A) positively correlated.
B) independent, that is, not correlated.
C) positively correlated if the inflation rate is positive and negatively correlated if the inflation rate is negative.
D) negatively correlated.
Correct Answer:
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Q12: The most direct way in which money
Q13: Liquidity can
A)be created by borrowing long and
Q14: In the short run, which of the
Q15: The unit of account
A)is an accounting of
Q16: Liquidity is the same as
A)diversification of an
Q18: In the short run, when the Reserve
Q19: When the nominal interest rate rises, the
Q20: The "double coincidence of wants" problem is
A)always
Q21: When the quantity of money demanded is
Q22: When the nominal interest rate rises, the
A)quantity
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