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Quantity Theory of Money
A theory that relates the money supply to the price level and the rate of economic growth.
Money Supply
The sum of all financial assets, encompassing cash and deposits in banks, present within an economy at a given moment.
Price Level
An indicator that measures the typical prices for a comprehensive selection of goods and services within the economy.
Quantity Theory of Money
An economic theory that relates the money supply to the level of prices and the rate of inflation, proposing that changes in the money supply will directly affect price levels in the economy.
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