The quantity theory of money seeks to explain the connection between money and

Question

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The quantity theory of money explains that the supply of money in an economy has a direct relationship with the general level of prices in the long run. As the quantity of money increases, so do the prices of goods and services, and vice versa. The theory does not seek to explain the connection between money and interest rates, unemployment, output, or consumer confidence.

The Quantity Theory of Money Seeks to Explain the Connection