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9. Quantity theory of money is based on the Classical Theory. Accordingly, there is a direct relationship between the price level and nominal supply.

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9. Quantity theory of money is based on the Classical Theory. Accordingly, there is a direct relationship between the price level and nominal supply. a. What must hold in order for this direct relationship to hold? b. What is the monetary policy rule is suggested by the quantity theory of money? c. Using the result of the quantity theory of money (, try to explain the current increase in the inflation.

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