According to the quantity theory of money, an increase in the money supply leads to:
A. a decrease in prices, as there are more dollar bills spent on the same number of goods and services.
B. an increase in prices, as there are more dollar bills spent on the same number of goods and services.
C. an increase in prices, as there are the same dollar bills spent on a greater number of goods and services.
D. a decrease in price, as there are the same dollar bills spent on a greater number of goods and services.
Answer: B
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What will be an ideal response?
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