According to the quantity theory of money,increasing the money supply:
A)leads to inflation.
B)causes production to increase.
C)leads to increased spending.
D)causes each dollar to be spent less often.

Question

Quizplus · Accepted Answer

The quantity theory of money suggests that increasing the money supply leads to inflation, as there is more money chasing the same amount of goods and services, which results in higher prices.

According to the Quantity Theory of Money,increasing the Money Supply