________ quantity theory of money suggests that the demand for money is purely a function of income,and interest rates have no effect on the demand for money.
A)Keynes's
B)Fisher's
C)Friedman's
D)Tobin's

Question

Quizplus · Accepted Answer

Fisher's quantity theory of money states that the demand for money is solely dependent on income, and interest rates do not have any effect on it. This theory suggests that an increase in the money supply will lead to inflation, as the demand for money will remain constant while the supply increases.

________ Quantity Theory of Money Suggests That the Demand for Money