单选题 In a full employment economy the quantity theory of money states that any increase in the supply of money in excess of the rate of growth of real GDP will lead to:

A、

A. increased prices.
B、

B. increased velocity.
C、

C. increased production.

【正确答案】 A

【答案解析】The quantity theory of money hypothesizes that a change in the money supply, at full employment, will cause a proportional change in the price level because velocity and real output will be unaffected. According to the equation of exchange, MV = PY, output of goods and services produced, Y, at full employment cannot change, so the price level, P, must increase.