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The More Sophisticated Version of the Quantity Theory of Money

Question 69

Multiple Choice

The more sophisticated version of the quantity theory of money concludes


A) nominal GDP is proportional to the money supply.
B) real GDP is proportional to the money supply.
C) the money supply should be kept constant to ensure steady growth in GDP with declining prices.
D) investment expenditures are quantitatively more important than consumption expenditures.
E) the circulation velocity of money is extremely volatile.

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