Question

Which of the following statements is NOT correct in the

Q: Answer-Which of the following statements is NOT correct in the context of quantity theory of money?

The Quantity Theory of Money assumes that the velocity of money is constant in the short run. It does not necessarily rise with an increase in the quantity of money.

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

More Research Questions

Which of the following is a depreciation method that is not commonly used?
The ratio of two numbers is 7 : 5, and their HCF is 6. What is their LCM?
Match the following Mughal emperors with their contributions:
What number should be subtracted from both the terms of the ratio 17 : 21 so as to make it as 1 : 2 ?
Hardware devices that are not part of the main computer system and are often added later to the system are ________
Which of the following books is the foundational book of Sanskrit grammar?
A sum of Rs. 591 is divided among X, Y and Z such that X gets Rs. 136 more than Y. Y gets Rs. 58 more than Z. Find the share of Z?
Core inflation is different from headline. inflation because the former
Which of the following to develop a second hydropower project in Nepal?
The father of accounting is

Which of the following statements is NOT correct in the

Solution