Q
If the demand for money depends on the interest rate the velocity of circulation is ?
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A
A. Not constant and the quantity theory of money does hold.
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B
B. Constant and the quantity theory of money does hold.
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C
C. Not constant and the quantity theory of money does not hold.
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D
D. Constant and the quantity theory of money does not hold.
Correct Answer:
C. C. Not constant and the quantity theory of money does not hold.