The quantity theory of money assumed
A) that an increase in prices causes a proportionate increases in real GDP.
B) a fall in the velocity of money causes a proportionate increase in the money supply.
C) a rise in money supply causes a proportionate fall in velocity.
D) the fraction of income people desire to hold in the form of money is a constant.
Correct Answer:
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Q1: Which of the following was NOT part
Q2: The largest component of the M1 measure
Q3: The decline in the transaction demand for
Q4: The issuance of new stocks or bonds
Q5: Keynes' speculative demand for money arises because
A)individuals
Q7: In the long run,a 1% increase in
Q8: If interest rates are falling,then,ceteris paribus,
A)bond holders
Q9: A negotiable large-denomination certificate of deposit is
Q10: Imagine a crude banking system based on
Q11: According to the "square-root rule" of the
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