the quantity theory of money is a fairly recent addition to economic theory. can explain both moderate…

the quantity theory of money is a fairly recent addition to economic theory. can explain both moderate inflation and hyperinflation. argues that inflation is caused by too little money in the economy. all of the above are correct.

the quantity theory of money is a fairly recent addition to economic theory. can explain both moderate inflation and hyperinflation. argues that inflation is caused by too little money in the economy. all of the above are correct.

Answer

Brief Explanations:

The quantity - theory of money is not a recent addition (it has a long history). It posits that inflation is caused by too much money in the economy, not too little. It can explain both moderate and hyper - inflation by relating the money supply to the price level.

Answer:

B. can explain both moderate inflation and hyperinflation.