The quantity theory of money argues that, in the long run, a percentage change in the quantity of money will create an equal percentage change in

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The quantity theory of money, expressed by the equation MV = PY, suggests that if the velocity (V) and real output (Y) are constant, a change in the money supply (M) will result in a proportional change in the price level (P).

The Quantity Theory of Money Argues That, in the Long