Question

According to the Quantity Theory of Money (QT

  • M , what is the effect of a change in the velocity of money on the price level in the long run?
A A permanent change in velocity leads to a proportional change in the price level.
B A change in velocity has no long-run effect on the price level.
C A change in velocity leads to a proportional change in output in the long run.
D A change in velocity affects only the nominal interest rate in the long run.
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