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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.
Inflation
growth in the quantity of money.
macro
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.
In an economy, the quantity of money is measured by the Money Supply. This is the amount of money available in an economy in a specific period of time.
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
by nt bringin money to the economy
growth in the quantity of money.
An inflation rate of from 1-3% should ensure an adequate money supply for a healthy economy.
macro
inflation
inflation
inflation