Which of the following is assumed constant in the quantity theory of money?
A) money supply
B) velocity
C) the price level
D) output

Name: Which of the following is assumed constant in the quantity theory of money? A) money supply B) velocity C) the price level D) output
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Question

Quizplus · Accepted Answer

The quantity theory of money assumes that the velocity of money (the rate at which money changes hands) is constant in the short run.

Which of the Following Is Assumed Constant in the Quantity