The quantity theory of money seems to be most consistent when growth in the money supply is _____ and the time period is _____.
A) small; long
B) small; short
C) large; long
D) large; short

Question

Quizplus · Accepted Answer

The quantity theory of money is most consistent when there is a large growth in the money supply over a long period, as it assumes a direct relationship between money supply and price levels, which is more observable over extended periods.

The Quantity Theory of Money Seems to Be Most Consistent