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The Quantity Theory of Money Holds That, as the Supply

Question 72

Multiple Choice

The quantity theory of money holds that, as the supply of money increases relative to the demand for money, people will adjust their portfolios of assets by adding:


A) bonds first, then stocks, then real assets.
B) stocks first, then bonds, then real assets.
C) real assets first, then stocks, then bonds.
D) bonds first, then real assets, then stocks.

Correct Answer:

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