According to the quantity theory of money,money growth in the long run:
A) affects both real GDP growth and inflation.
B) affects real GDP growth only.
C) affects inflation only.
D) has no effect on either real GDP growth or inflation.

Question

Quizplus · Accepted Answer

The quantity theory of money, in the long run, posits that money growth affects inflation only, as real GDP growth is determined by real factors like technology and resources, not by the money supply.

According to the Quantity Theory of Money,money Growth in the Long