According to the quantity theory of money, increasing the money supply:
A. leads to inflation.
B. causes production to increase.
C. leads to decreased spending.
D. causes each dollar to be spent less often.
A. leads to inflation.
Economics
You might also like to view...
The average price of goods and services in the economy is also known as
A) the cost of living. B) the inflation rate. C) a market basket. D) the price level.
Economics
An increase in the supply of oranges in a town drives down its price by 5 percent. Which of the following changes will be observed in the market?
a. The demand for oranges will decrease. b. The demand for oranges will increase. c. The quantity of oranges demanded will increase. d. The quantity of oranges demanded will decrease.
Economics