According to the quantity theory, in the long run, an increase in the growth rate of ________ leads to an increase in the ________ . a.real GDP; inflation rate b.the quantity of money; growth rate of real GDP c.the quantity of money; inflation rate d.real GDP; growth rate of velocity
According to the quantity theory, in the long run, an increase in the growth rate of ________ leads to an increase in the ________ . a.real GDP; inflation rate b.the quantity of money; growth rate of real GDP c.the quantity of money; inflation rate d.real GDP; growth rate of velocity
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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According to the quantity theory, in the long run, an increase in the growth rate of ________ leads to an increase in the ________ .
a.real GDP; inflation rate
b.the quantity of money; growth rate of real GDP
c.the quantity of money; inflation rate
d.real GDP; growth rate of velocity
Expert Solution
Step 1
The quantity theory of money describes the relationship among money, output, and prices and it is used to study inflation.
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