In a recent discussion on the quantity theory of money, three junior economists, Fred Sauvage, Linda McIntyre and Jason Richards, were discussing the long-run changes in economic variables that would result from an increase in the money supply. They stated the following: Sauvage: According to the quantity theory of money, in the long run only the price level would change if the central bank increased the money supply. McIntyre: According to the quantity theory of money, an increase in the money supply would bring about a long-run decline in unemployment. Richards: According to the quantity theory of money, in the long run only the velocity of money would change as a result of an increased money supply. Are the statements made by Sauvage, McIntyre and Richards correctSauvage McIntyre Richards()
A. Incorrect Correct Correct
B. Correct Incorrect Incorrect
C. Correct Incorrect Correct
参考答案：B
解析：
The quantity theory of money states that an increase in the money supply will cause a proportional increase in prices in the long run. The original proponents of the quantity theory felt that velocity and output were determined by institutional factors other than the money supply and were thus nearly constant. Therefore, if the money supply increases while velocity and quantities are fixed, prices must rise.