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According to the Quantity Theory of Money

Question 238

Multiple Choice

According to the quantity theory of money


A) real Gross Domestic Product (GDP) 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 Gross Domestic Product (GDP) , at least in the long run.
D) a given proportionate increase in the money supply leads to an equal proportionate increase in the price level.

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