Which of the following variables are assumed to be more or less constant in the quantity theory of money equation?

A) The price level
B) The real GDP
C) The money supply
D) The nominal GDP
E) The velocity of money

Quantity Theory of Money

A theory stating that the general price level of goods and services is directly proportional to the amount of money in circulation.

Price Level

A measure of the average prices of goods and services in an economy at a given time, often used to gauge inflation.

Real GDP

Gross Domestic Product adjusted for inflation, providing a more accurate measure of economic output over time by valuing goods and services at constant prices.