Quantitative Theory of Money

Match the following

• Average Price Level

• V stand for

• Money Circulation Velocity

• T stand for

• Supply of Money

• P stand for

• Volume of Transactions of Goods

• QTM is displayed with this

• MV=PT

• M stands for

QTM Equation

• T

• M

• =

• P

• V

The amount of money multiplied by the velocity of circulation, which equals total spending is

• Economic Growth

• Production Theory
  

• Economics Bruh

• Equation of Exchange

infers that inflation depends on how much money the government prints

What is the concept that represents the amount of money multiplied by the velocity of circulation, which equals total spending?

• Economic Growth

• Production Theory

• Economics

• Equation of Exchange

Define the term 'Economic Growth'.

• The amount of money multiplied by the velocity of circulation, which equals total spending

• The increase in the production of goods and services over a specific period of time

• A theory that explains the relationship between inputs and outputs in the production process

• A term used to describe the field of study that deals with the production, distribution, and consumption of goods and services

What is the main focus of the Production Theory?

• The amount of money multiplied by the velocity of circulation, which equals total spending

• The increase in the production of goods and services over a specific period of time

• A theory that explains the relationship between inputs and outputs in the production process

• A term used to describe the field of study that deals with the production, distribution, and consumption of goods and services

Central banks often use the quantity theory of money to guide...

• monetary policy decisions

• taxation decisions

The quantitative theory of money states that when the amount of money in the economy doubles...

• so does the level of goods' prices

• Product increases

• inflation increases

• gdp decreases