According to the quantity theory of money,an increase in the stock of precious metals or bills of exchange usually results in increased trade and rising prices.Both economic events helped merchant capitalists and the king.

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The quantity theory of money suggests that an increase in the money supply, which could be in the form of precious metals (like gold and silver) or bills of exchange, leads to an increase in overall prices. This is because more money in circulation tends to increase demand for goods and services, leading to higher prices. Merchant capitalists benefit from increased trade and higher prices for goods, while kings or governments benefit from increased revenue from taxes and duties on this enhanced trade and economic activity.

According to the Quantity Theory of Money,an Increase in the Stock