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Answer to Question #346535 in Macroeconomics for Divu
Question #346535
.What is Quantity Theory of Money?
Expert's answer
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.
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#339914 on Dec 2023
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