According to the quantity theory of money, in the long run, an increase in the quantity of money results in an equal percentage increase in
A) the price level.
B) the growth rate of real GDP.
C) the inflation level.
D) the growth rate of potential GDP.

Question

Quizplus · Accepted Answer

According to the quantity theory of money, an increase in the money supply leads to a proportional increase in the price level in the long run, assuming velocity and real output are constant.

According to the Quantity Theory of Money, in the Long