Principles of Economics, 7th Edition

Published by South-Western College
ISBN 10: 128516587X
ISBN 13: 978-1-28516-587-5

Chapter 30 - Part X - Money Growth and Inflation - Questions for Review - Page 655: 2

Answer

Increasing the money supply causes a proportionate increase in the price level.

Work Step by Step

The quantity theory of money says that the quantity of money available determines the price level.
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