Which statement is most consistent with the quantity theory of money?
A) expectations cause inflation
B) rising oil prices cause inflation
C) increases in wages cause inflation
D) rising money supply causes inflation
E) what goes around comes around

Question

Quizplus · Accepted Answer

The quantity theory of money asserts that inflation is directly proportional to the supply of money in an economy. Therefore, rising money supply causes inflation.

Which Statement Is Most Consistent with the Quantity Theory of Money