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  3. Finance Glossary
  4. Terms Beginning With T
  5. The Quantity Theory of Money

The Quantity Theory of Money

Definition of 'The Quantity Theory of Money'

This states that changes in the nominal money supply lead to equivalent changes in the price level (and money wages) but do not have effects on ouput and employment.

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Related Terms

Client MoneyAPTEvolutionary Theory of the FirmTraditional Theory of Capital StructureUnbiased Forward Predictor TheoryAdjustment, Price and QuantityEconomic Order QuantityEOQEquilibrium priceLong-Run EquilibriumMarginal Rate of SubstitutionShort-Run EquilibriumAt-The-Money OptionFlight From MoneyToken MoneyFund ManagementMoney MultiplierPurchasing Power of MoneyStock of High-Powered MoneyAccommodatory Monetary Policy

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