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Subject:
Macroeconomics
Category: Business and Money > Economics Asked by: kazi2004-ga List Price: $4.00 |
Posted:
27 Aug 2005 08:40 PDT
Expires: 26 Sep 2005 08:40 PDT Question ID: 561126 |
Explain the quantity theory of money?why does higher growth cause inflaion?thanks with graph and reffrence if possible. |
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There is no answer at this time. |
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Subject:
Re: Macroeconomics
From: idan-ga on 27 Sep 2005 03:37 PDT |
The quantity theory of money deals with the direct conection between the amount of money and the change of prices index (inflation),it is also known as the Monetary Neutarality. This theory presented by the nobel winner, Robert E. Lucas, in a study paper from 1996: "Nobel Lecture: Monetary Neutrality. The main conclusin from this work was that printing new money will cause inflation in the same proportion.You can find more explantion, graphs and data in the article mentioned above. good luck |
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