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Q: Macroeconomics ( No Answer,   1 Comment )
Question  
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.
Answer  
There is no answer at this time.

Comments  
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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