The quantity theory of money states that a reduction in the quantity of money in…

The quantity theory of money states that a reduction in the quantity of money in circulation would bring about
  • A.
    a geometrical fall in prices
  • B.
    a proportionate fall in prices
  • C.
    a rise in prices
  • D.
    an unequal fall in prices
Correct Answer: Option B
Explanation
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