The quantity theory of money states that increases in the money supply cause increases in both the price level and output.

Name: The quantity theory of money states that increases in the money supply cause increases in both the price level and output.
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The quantity theory of money primarily posits that increases in the money supply lead to proportional increases in the price level, but it does not necessarily claim a direct effect on output in the long term.

The Quantity Theory of Money States That Increases in the Money