Question

define monetory theory in brief in economics

Answer 1

Monetary theory holds that change inmoney supply is the main driver in changes in economic activity. When monetary theory works in practice, central banks, which control the levers of monetary policy, can exert much power over economicgrowth rates.

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Answer 2

What is 'Monetary Theory'

Monetary theory holds that change in money supply is the main driver in changes in economic activity. When monetary theory works in practice, central banks, which control the levers of monetary policy, can exert much power over economic growth rates.

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