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