The school of money believes that monetary policy is mainly transmitted through changes in the amount of money. The increase in the supply of money makes people spend more money on expenditure, which eventually causes changes in total supply and demand.
举一反三
- What sort of event could lead to a simultaneous decrease in the rates of inflation and unemployment? A: a decrease in money supply B: an increase in money supply C: an adverse supply shock D: a decrease in material prices E: restrictive monetary policy following an adverse supply shock
- The quantity theory of money indicates that in any country the money supply is equated to the demand for money, which is inversely proportional to the money value of the gross domestic product.(<br/>)
- Given Pus and Yus, An increase in the European money supply causes the euro to depreciate against the dollar, but it does not disturb the U.S. money market equilibrium.
- Changes in the life of ordinary people can be seen in the amount of money spent on food, on clothes and in money spent on new items, such as_____.
- The emergence of money separates the process of exchange into two links of buying and selling, which makes it possible for the disconnection of commodity trading and the imbalance of supply and demand.