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(Solved): According to the quantity theory of money, velocity is proportional to the price level. is constan ...



According to the quantity theory of money, velocity is proportional to the price level.
is constant.
is positively related to

According to the quantity theory of money, velocity is proportional to the price level. is constant. is positively related to the real interest rate. increases with nominal income.


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Answer :The quantity theory of money states that the total nominal spending in an economy is equal to the product of the money supply and the velocity
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