Using the economic way of thinking,explain why colonists believed a shortage of money could negatively impact their economy.Use the quantity theory of money (MV ? PQ)to explain why?a shortage of colonial money could either lead to negative economic growth (decrease in Q)or deflation (a decrease in P).Assume velocity (V)is stable or constant.According to the research of economic historians,did colonial America experience positive or negative growth? Did colonists experience inflation or deflation in the years leading up to the American Revolution? Does this evidence support the claim that there was a shortage of money in colonial America?

Question

Quizplus · Accepted Answer

The Answer of Using the economic way of thinking,explain why colonists believed a shortage of money could negatively impact their economy.Use the quantity theory of money (MV ? PQ)to explain why?a shortage of colonial money could either lead to negative economic growth (decrease in Q)or deflation (a decrease in P).Assume velocity (V)is stable or constant.According to the research of economic historians,did colonial America experience positive or negative growth? Did colonists experience inflation or deflation in the years leading up to the American Revolution? Does this evidence support the claim that there was a shortage of money in colonial America?

Using the Economic Way of Thinking,explain Why Colonists Believed a Shortage