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Answer to Question #346535 in Macroeconomics for Divu

Question #346535



.What is Quantity Theory of Money?



1
Expert's answer
2022-06-01T12:48:43-0400

Quantity theory of money states that money supply and price level in an economy are in direct proportion to one another. When there is a change in the supply of money, there is a proportional change in the price level and vice-versa.


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