Economists believe that the _____ determines the price level in the long run.
A)money supply
B)asset market approach
C)exchange rate
D)marginal tax rate

Question

Quizplus · Accepted Answer

According to the quantity theory of money, in the long run, the price level is directly proportional to the money supply. Therefore, economists believe that the money supply determines the price level in the long run.

Economists Believe That the _____ Determines the Price Level in the Long