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
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