According to the quantity theory of money, central banks _____ the real value of the public's total money balances.
A) determine any change in
B) sometimes by chance change
C) cannot change
D) choose whether to change

Question

Quizplus · Accepted Answer

The quantity theory of money posits that the central bank cannot change the real value of the public's total money balances because this value is determined by real factors like production and consumption, not by the nominal stock of money.

According to the Quantity Theory of Money, Central Banks _____