222k views
22 votes
(a) Explain the quantity theory and
(b) how does the theory explains the cause of inflation​

1 Answer

2 votes
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.
User Throwit
by
8.2k points

No related questions found

Welcome to QAmmunity.org, where you can ask questions and receive answers from other members of our community.

9.4m questions

12.2m answers

Categories