According to the quantity theory of money, in the long run, changes in the money supply affect:
A) the purchasing power of money.
B) output.
C) employment.
D) the money illusion.

Question

Quizplus · Accepted Answer

The quantity theory of money posits that changes in the money supply, in the long run, primarily affect the purchasing power of money, leading to inflation or deflation without impacting real output or employment in the long term.

According to the Quantity Theory of Money, in the Long