Economy, asked by chetank35, 11 months ago

Explain the concept of quality theory of money

Answers

Answered by dplincsv

Explanation:

Correction in the question:-

It's not Quality

It's Quantity

Answer :-

The quantity theory of money states that there is a direct relationship between the quantity of money in an economy and the level of prices of goods and services sold. So an increase in money supply causes prices to rise (inflation) as they compensate for the decrease in money's marginal value.

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