The quantity theory of money is a theory of how

1. A) the money supply is determined.
2. B) interest rates are determined.
3. C) the nominal value of aggregate income is determined.
4. D) the real value of aggregate income is determined.

Because the quantity theory of money tells us how much money is held for a given amount of aggregate income, it is also a theory of

1. A) interest-rate determination.
2. B) the demand for money.
3. C) exchange-rate determination.
4. D) the demand for assets.

The average number of times that a dollar is spent in buying the total amount of final goods and services produced during a given time period is known as

1. A) gross national product.
2. B) the spending multiplier.
3. C) the money multiplier.
4. D) velocity.