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Choose the correct one The quantity theory of money assumes that: prices are constant. the money supply is constant. velocity is constant. income is constant.

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The quantity theory of money assumes that:

  1. prices are constant.
  2. the money supply is constant.
  3. velocity is constant.
  4. income is constant.

The currency-deposit ratio is determined by:

Group of answer choices

  1. the Federal Reserve.
  2. preferences of households about the form of money they wish to hold.
  3. the Federal Deposit Insurance Corporation (FDIC).
  4. business policies of banks and the laws regulating banks.

In the United States, the money supply is determined:

Group of answer choices

  1. according to a constant-growth-rate rule.
  2. only by the behavior of individuals who hold money and of banks in which money is held.
  3. only by the Fed.
  4. jointly by the Fed and by the behavior of individuals who hold money and of banks in which money is held.

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