Economy, asked by Priyam8331, 1 year ago

Explain the concept of quality theory of money

Answers

Answered by blahblahblahhhhh

Definition of 'Quantity Theory Of Money' Definition: 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.
I hope that this answer will help u:))

Anonymous: 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.
It is supported and calculated by using the Fisher Equation on Quantity Theory of Money.
M*V= P*T
where,
M = Money supply
V = Velocity of money
P = Price level
T = volume of the transactions

Answered by MannatkaurK

hey user

here we begin

------In monetary economics, the quantity theory of money (QTM) states that the general price level of goods and services is directly proportional to the amount of money in circulation, or money supply. ... Alternative theories include the real bills doctrine and the more recent fiscal theory of the price level.------

thanks

Previous Question

Next Question