According to the quantity theory of money,inflation results when excessive paper money is in circulation.

Question

Quizplus · Accepted Answer

The quantity theory of money states that when there is an excess supply of money in circulation, it leads to inflation. This is because when there is more money chasing the same amount of goods and services, the prices of those goods and services go up. Therefore, a higher quantity of paper money in circulation can lead to inflation.

According to the Quantity Theory of Money,inflation Results When Excessive