which of the following are true statements about another growth model - the Quantitative Theory of Credit? [Multiple select]Credit creation drives nominal GDP growth and asset price inflation.Banks are only financial intermediaries between borrowers and lenders.Empirically, in the 20th century, the velocity of money is usually constant over time when money is defined as M0, M1. . .M5.A large ratio of Cr/C can lead to bank crashes and recession.

Richer warner presented the Quantity Theory of Credit in the month of April 1993, at the RES Annual…

Answered: which of the following are true…

Principles of Economics (MindTap Course List)

8th Edition

ISBN:9781305585126

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter36: Six Debates Over Macroeconomic Policy

Section: Chapter Questions

Problem 4PA

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which of the following are true statements about another growth model - the Quantitative Theory of Credit? [Multiple select]
1. Credit creation drives nominal GDP growth and asset price inflation.
2. Banks are only financial intermediaries between borrowers and lenders.
3. Empirically, in the 20^th century, the velocity of money is usually constant over time when money is defined as M0, M1. . .M5.
4. A large ratio of Cr/C can lead to bank crashes and recession.

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