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quantity theory: Theory that too much money in the economy causes inflation.
for money to be in the Market, there must be money equilibrium. i.e quantity of money supplied must be equal to quantity of money demanded. in a situation whereby quantity of money supply increases, without a corresponding increase in quantity demanded, there will be inflation in the Economy. inflation can occure in two different perspectives; either by increase in the general price level or increase in money supply without a corresponding increase in money demand.
growth in the quantity of money.
macro
money supply growth that exceeds real GDP growth
for money to be in the Market, there must be money equilibrium. i.e quantity of money supplied must be equal to quantity of money demanded. in a situation whereby quantity of money supply increases, without a corresponding increase in quantity demanded, there will be inflation in the Economy. inflation can occure in two different perspectives; either by increase in the general price level or increase in money supply without a corresponding increase in money demand.
quantity theory: Theory that too much money in the economy causes inflation.
Thomas M. Humphrey has written: 'Money, banking, and inflation' -- subject(s): Money, Monetary policy, Inflation (Finance), Banks and banking 'Essays on inflation' -- subject(s): Inflation (Finance), Addresses, essays, lectures 'Alfred Marshall and the quantity theory of money' -- subject(s): Quantity theory of money
growth in the quantity of money.
When money supplies grow too rapidly, and product supply doesn't keep up with them, the value of money falls.
macro
money supply growth that exceeds real GDP growth
Inflation
Central banks control the quantity of money in circulation by printing more bills when the central storage is low and refraining from printing when the country is suffering from inflation.
William Oliver Coleman has written: 'Economics and Its Enemies' 'The causes, costs and compensations of inflation' -- subject(s): Money, Inflation (Finance), Quantity theory of money, Risk
increase in prices goods and services when government prints more money
Investing is when we expect the money to appreciate atleast to beat the inflation, and thus money grows. Saving is just to keep the money idle out of the expenditure.