The "quantity theory of money" describes the relationship between: Question 37 options: a) prices, employment, money supply, and production. b) the velocity of money, money supply, real output, and prices. c) GDP, money supply, consumption, and savings. d) the money supply and real GDP.

Question

Engineering

Duncan Macdonald

15 August, 04:56

The "quantity theory of money" describes the relationship between: Question 37 options: a) prices, employment, money supply, and production. b) the velocity of money, money supply, real output, and prices. c) GDP, money supply, consumption, and savings. d) the money supply and real GDP.

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Answers (1)

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Sonia Crawford · Answer 1

b) the velocity of money, money supply, real output, and prices

Explanation:

The quantity theory of money can be summarized as the relationship between the supply of money and the price of goods in the economy and states that percentage change in the money supply will be resulting in an equivalent level of inflation or deflation