To maintain the growth of the money supply, the output of goods and services needs to constantly increase.

Name: To maintain the growth of the money supply, the output of goods and services needs to constantly increase.
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Question

Quizplus · Accepted Answer

The quantity theory of money states that the money supply multiplied by the velocity of circulation is equal to the price level multiplied by real output. Therefore, if the money supply is to grow, real output must also grow.

To Maintain the Growth of the Money Supply, the Output