The classical economists believed that if the quantity of money doubled
A)output would double.
B)prices would fall.
C)prices would double.
D)prices would remain constant.

Question

Quizplus · Accepted Answer

According to classical economists, the quantity theory of money states that there is a direct relationship between the quantity of money in circulation and the level of prices. Therefore, if the quantity of money doubled, prices would also double.

The Classical Economists Believed That If the Quantity of Money