Question

Compare the classical & Friedman Quantity theory of money?
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Answer 1

Answer:

In Friedman's modern quantity theory of money, the supply of money is independent of demand for money. Due to the actions of the monetary authorities, the supply of money changes, whereas the demand for money remains more or less stable. ... Thus in both cases the demand for money remains stable.

The fundamental principle of the classical theory is that the economy is self‐regulating. ... The classical doctrine—that the economy is always at or near the natural level of real GDP—is based on two firmly held beliefs: Say's Law and the belief that prices, wages, and interest rates are flexible. Say's Law.