Question

Which of the following statements is NOT correct in the context of quantity theory of money?

A The quantity of money available determines the price level in the economy
B The growth rate in the quantity of money available determines the inflation rate in the economy
C The velocity of money must rise with the increase in the quantity of money in the economy
D The economy’s output is determined by factor supplies and technology, because money is neutral
Practice Next

Hey! Ask a query

🎓
Think You're Ready for RBI Grade B?
RBI Grade B 2026 Phase 1 Memory Based Paper
  • 200 Questions with Detailed Solutions
  • Section-wise Coverage (GA, English, Quant & Reasoning)