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Emmanuel Macias
on Oct 12, 2024

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The classical quantity theory of money is based on

A) exchange rate theory.
B) Say's law.
C) the equation of exchange.
D) Keynesian theory.

Quantity Theory

A theory in economics that argues the amount of money in circulation in an economy is directly proportional to the price level of goods and services.

Exchange Rate

The value of one country's currency in relation to another country's currency.

Say's Law

Say's Law, often summarized as "supply creates its own demand," is an economic theory that suggests that production is the source of demand.

  • Identify the role and implications of the quantity theory of money in classical economics.
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Carter GentileOct 16, 2024
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