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

1 answer:

n200080 [17]2 years ago

5 0

The quantity theory is a framework to understand price changes in relation to the supply of money in an economy.

It assumes an increase in money supply creates inflation and vice versa.

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

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