According to the quantity theory, if constant growth in the money supply is combined with fluctuating velocity, which of the following is most likely to result? a) innovations relating to banking and finance b) unpredictable rises and falls in nominal GDP c) quantity of credit rises above where it otherwise be d) monetary policy will become inevitably imprecise
According to the quantity theory, if constant growth in the money supply is combined with fluctuating velocity, which of the following is most likely to result? a) innovations relating to banking and finance b) unpredictable rises and falls in nominal GDP c) quantity of credit rises above where it otherwise be d) monetary policy will become inevitably imprecise
Chapter16: Monetary Policy
Section: Chapter Questions
Problem 15SQ
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According to the quantity theory, if constant growth in the money supply is combined with fluctuating velocity, which of the following is most likely to result?
a) innovations relating to banking and finance
b) unpredictable rises and falls in nominal
c) quantity of credit rises above where it otherwise be
d)
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