The quantity theory of money states that
A) inflation increases when the money growth rate increases.
B) as the price level increases, the demand for money increases.
C) as the interest rate rises, the demand for money decreases.
D) changes in the quantity of money are determined by the commercial banks and not the Federal Reserve.
Question 2
The market for wheat is an example of
A) a monopoly market.
B) an oligopolistic market.
C) a perfectly competitive market.
D) a monopolistically competitive market.
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