Quantity Theory of Money: Output and Prices


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The quantity theory of money describes the relationship between what fiscal components?

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1. Monetarism is the economic viewpoint that states which of the following?

2. According to the quantity theory of money, increasing the money supply will lead to what?

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About This Quiz & Worksheet

Examining how much money is needed in order for our economy to function, this quiz and corresponding worksheet will help you gauge your knowledge of the quantity theory of money. Topics covered on the quiz include the definition of monetarism and the result of increasing the money supply.

Quiz & Worksheet Goals

Use this printable worksheet and quiz to review:

  • Characteristics of the quantity theory of money
  • Results of increasing the money supply
  • Practice problems involving GDP and velocity

Skills Practiced

  • Interpreting information - verify you can read information regarding the results of an increase in money and interpret it correctly
  • Reading comprehension - ensure that you draw the most important information from the related macroeconomics lesson
  • Knowledge application - use your knowledge to answer questions about the meaning of monetarism

Additional Learning

To learn more, review the lesson Quantity Theory of Money: Output and Prices. This lesson will help you:

  • Understand the quantity theory of money
  • Identify the four main areas of the theory
  • Explain when the theory got its start
  • Describe what's involved in the equation of exchange
  • Appreciate what ultimately happens when the quantity of money is doubled