According to classical economists, in the quantity theory of money,

a. the price level is strictly a function of the supply of money
b. the supply of money is strictly a function of the price level
c. if output is constant, an increase in the quantity of money will cause the price level to fall
d. the money supply and the price level are inversely related
e. the money supply is controlled by the government which is why we have had moderate (and sometimes more than moderate) inflation


A

Economics

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