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AveGali [126]
3 years ago
14

PLEASE HELP ASAP!!! WILL MAKE YOU THE BRAINIEST!!

English
1 answer:
hjlf3 years ago
5 0

Answer:

2

Explanation:

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(a) Explain the quantity theory and (b) how does the theory explains the cause of inflation​
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The quantity theory generally represented by the formula:

MV = PT

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M, money supply, that is monet in the economy

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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.

B.)

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