Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Transcribed Image Text:Which of these assumptions does the Quantity Theory of Money depends on?
Velocity of money is stable and GDP is at full employment.
Real GDP depends upon the supply of resources and full employment is achieved.
Real GDP depends upon the supply of resources and velocity of money is stable.
There is government budget balance and trade balance in net exports.
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