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Question
The quantity theory of money along with the assumption of a constant velocity can explain which of the following?A. At a given level of money growth, the higher the level of real growth the higher the level of inflation will be.
B. At a given level of money growth, the higher the level of real growth the lower the level of inflation will be.
C. If real growth is higher than money growth, the price level must be rising.
D. If real growth equals money growth, the price level is falling.
Answer
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