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The Simple Quantity Theory of Money Predicts That If

Question 28

Multiple Choice

The simple quantity theory of money predicts that if


A) the money supply rises by $200,then GDP falls by $200.
B) GDP rises by $400,then the money supply rises by $400.
C) the money supply rises by 10 percent,then the price level rises by 10 percent.
D) the money supply falls by $300,then GDP rises by $300.

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