I received half credit for this question. What is the correct answer? The averag
ID: 1214484 • Letter: I
Question
I received half credit for this question. What is the correct answer?
The average number of times each dollar in the money supply is used to purchase goods and services is called the velocity of money. The quantity theory of money. The discount rate. The fractional reserve system. Evidence shows that the quantity equation is correct over the long run, which implies that the growth rate of the velocity of money causes the level of prices to change. growth rate of inflation leads to growth in GDP. growth rate of the money supply determines the rate of inflation. growth rate of GDP causes most of the change in the money supply.Explanation / Answer
answer 1 is correct
ans 2 is c
in the long run, a change in the quantity of money affects the price level but has no effect on real GDP.in the long run, a change in the quantity of money affects the price level but has no effect on real GDP.