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the quantity theory of money is

QUESTION 35 The quantity theory of money is likely to hold in the short run. no longer holds for high-inflation countries. is
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Answer #1

The quantity theory of money that is Milton Friedman's Statement that " inflation is always and everywhere a monetary phenomenon" is likely to hold in the long run but not in the short run. And quantity theory of money implies that countries with higher money growth rates should have higher inflation rate.

Answer: option C

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