The quantity theory of money and prices rests on the assumption that

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The quantity theory of money and prices assumes that the velocity of money is constant, meaning that the rate at which money changes hands in the economy remains relatively stable over time. This is a key assumption of the theory, which posits that changes in the money supply will have a proportional effect on prices in an economy. The other options presented are not central assumptions of the quantity theory of money and prices.

The Quantity Theory of Money and Prices Rests on the Assumption