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Mumz [18]
3 years ago
15

In which one of these situation would the price of goods most likely increase

English
1 answer:
Nata [24]3 years ago
4 0

Answer:

When discussing a price increase in a business-to-business environment, it is important to remember that our customers have probably had to have the same discussion with their own customers. A company exists only as long as it earns a profit and it can only do that if it delivers a quality product or service at the right price. This means that the key to any conversation about raising the price ...

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(a) Explain the quantity theory and (b) how does the theory explains the cause of inflation​
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Answer:

Kindly check explanation

Explanation:

The quantity theory generally represented by the formula:

MV = PT

Where ;

M, money supply, that is monet in the economy

V, velocity of money, which shows the rate at which money is used to obtain a finished product.

P ; average price level

T ; volume of transactions, good and services transacted in. the economy

​

The quantity theory explains how variation in the quantity of money in circulation within an economy causes variation in the price level of goods and services.

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