The hypothesis that changes in the money supply lead to proportional changes in the price level is called
A) the equation of exchange.
B) the Keynesian multiplier.
C) the theory of empirical relativity.
D) the quantity theory of money and prices.
Correct Answer:
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Q249: The quantity theory of money and prices
Q250: The equation of exchange specifies that
A) MsV
Q251: If both nominal and real GDP are
Q252: According to the simple quantity theory of
Q253: In the interest-rate-based transmission mechanism, a decrease
Q255: An increase in the price level means
Q256: The number of times per year that
Q257: The equation of exchange can be written
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Q259: What is the equation of exchange? How
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