Asked by
Darshnika Singh
on Oct 12, 2024
Verified
The crude quantity theory of money assumes that
A) V and Q remain constant.
B) V and Q vary.
C) V is constant and Q varies.
D) Q is constant and V varies.
Crude Quantity Theory
A theoretical framework suggesting that changes in money supply have a direct, proportional effect on the price level in an economy.
V and Q
Symbols often used in equations and formulas, V typically represents volume and Q can represent quantity.
- Gain insights into the nexus between the volume of money, velocity of its turnover, price indicators, and output level.
- Understand the impact of changes in the money supply on inflation and economic stability.
Verified Answer
KM
Learning Objectives
- Gain insights into the nexus between the volume of money, velocity of its turnover, price indicators, and output level.
- Understand the impact of changes in the money supply on inflation and economic stability.