In the Quantity Theory of Money Fischer states that, while other things remains the same,
A)Price level varies directly with the quantity of money
B)Price level varies inversely with the quantity of money
C)Value of money varies directly with the quantity of money
D)None of the above

Question

Quizplus · Accepted Answer

The Quantity Theory of Money, as stated by Irving Fisher, posits that the price level varies directly with the quantity of money in circulation, assuming other factors remain constant. This means that as the quantity of money increases, the price level (or the average level of prices of goods and services) also increases, and vice versa.

In the Quantity Theory of Money Fischer States That, While