From 1929 to 1933, GNP in the U.S. dropped from $104 billion to $58 billion. What explanation would the quantity theory suggest for this decline?
The wrong amount of government spending
Instability of velocity
The stock market crash of 1929
A reduction of money stock
Instability of the market system
If technology and resources increase, the
quantity theory of money leads us to expect:
no change in prices but more output.