According to the quantity theory of money, a 10 percent increase in the quantity of money ultimately leads to a 10 percent increase in

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The quantity theory of money states that the quantity of money in circulation is directly proportional to the price level in the economy. Therefore, a 10% increase in the quantity of money is expected to cause a 10% increase in the price level. The theory does not suggest any direct impact on real national income, real GDP, or velocity.

According to the Quantity Theory of Money, a 10 Percent