What does the quantity theory of money state?
A) Fiscal policy plays an important role in determining economic activity.
B) The quantity of money in circulation determines aggregate spending.
C) The quantity of money in circulation determines only the price level in the long run.
D) The quantity of money in circulation determines only real spending in the short run.

Question

What does the quantity theory of money state?  
A) Fiscal policy plays an important role in determining economic activity. 
B) The quantity of money in circulation determines aggregate spending. 
C) The quantity of money in circulation determines only the price level in the long run. 
D) The quantity of money in circulation determines only real spending in the short run.

Quizplus · Accepted Answer

The Answer of What does the quantity theory of money state?  
A) Fiscal policy plays an important role in determining economic activity. 
B) The quantity of money in circulation determines aggregate spending. 
C) The quantity of money in circulation determines only the price level in the long run. 
D) The quantity of money in circulation determines only real spending in the short run.

What Does the Quantity Theory of Money State