According to the quantity theory of money,
A) real national income is directly related to changes in the money supply in the long run.
B) velocity varies indirectly with the rate of growth of the money supply.
C) a proportionate increase in the money supply leads to a less than proportionate increase in real national income,at least in the long run.
D) a proportionate increase in the money supply leads to a proportionate increase in the price level.
Correct Answer:
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