Question

Discuss Irving Fisher’s version of the Quantity Theory of Money.

Answer 1

Quantity Theory of Money— Fisher's Version: Like the price of a commodity, value of money is determinded by the supply of money and demand for money. In his theory of demand for money, Fisher attached emphasis on the use of money as a medium of exchange. In other words, money is demanded for transaction purposes.

Answer 2

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❥Fisher's quantity theory is best explained with the help of his famous equation of exchange: MV = PT or P = MV/T. Like other commodities, the value of money or the price level is also determined by the demand and supply of money.

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✭Hòpè Ìt Hèĺp§.. Fòĺĺòw @Kaniskaa16✭

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