The quantity theory of money is a theory of:
A) money growth in the United States.
B) inflation.
C) economic growth.
D) the growth of tax burdens.

Question

Quizplus · Accepted Answer

The quantity theory of money is a theory that suggests the general price level of goods and services in an economy is directly proportional to the amount of money in circulation, which means that an increase in the supply of money leads to inflation. Therefore, the answer is B, inflation.

The Quantity Theory of Money Is a Theory Of