The quantity theory of money states that a reduction in the quantity of money in...
ECONOMICS
WAEC 2001
The quantity theory of money states that a reduction in the quantity of money in circulation would bring about
- A. a geometrical fall in prices
- B. a proportionate fall in prices
- C. a rise in prices
- D. an unequal fall in prices
Correct Answer: B. a proportionate fall in prices
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