According to the quantity theory:
A)unemployment is everywhere and always a monetary phenomenon.
B)inflation is everywhere and always a monetary phenomenon.
C)real output is everywhere and always a monetary phenomenon.
D)the equation of exchange does not hold true.

Question

Quizplus · Accepted Answer

The quantity theory of money suggests that inflation is primarily caused by changes in the money supply. It posits that an increase in money supply leads to a proportional increase in the price level, assuming velocity and output are constant.

According to the Quantity Theory