Question

The quantity theory of money Group of answer choices is a fairly recent addition to economic theory. can explain both moderate inflation and hyperinflation. argues that inflation is caused by too little money in the economy. All of the above are correct.

Answer 1

can explain both moderate inflation and hyperinflation.

Step-by-step explanation:

The quantity theory of money -

In the filed of economics , the theory states that price level of the services and goods is directly proportional to the money supply , is referred to as the quantity theory of money .

The theory originated in the very 16th century , where the trade of gold and silver starts from the America to Europe , which resulted in the rise of inflation , as more supply is more inflation .

Hence , the theory can explain the inflation and hyperinflation .