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Question #49015

If the demand for money depends on the interest rate the velocity of circulation is ?

Options:

A) not constant and the quantity theory of money does hold.

B) constant and the quantity theory of money does hold.

C) not constant and the quantity theory of money does not hold.

D) constant and the quantity theory of money does not hold.

Answer: If the demand for money depends on the interest rate the velocity of circulation is not constant and the quantity theory of money does not hold..

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