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:
unemployment. higher prices. lower prices. no change in prices but more output.