Definition of quantity theory in English:

quantity theory

Syllabification: quan·ti·ty the·o·ry
(also the quantity theory of money)


The hypothesis that changes in prices correspond to changes in the monetary supply.
More example sentences
  • If these two variables were assumed to remain constant, then the simple quantity theory would predict the price level to change in proportion to a change in the money supply.
  • The correlation between price level and money supply is determined by the quantity theory of money.
  • Traditionally, classical economists supported the quantity theory of money as explaining price levels.

Definition of quantity theory in:

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Pronunciation: ˌəʊlɪˈadʒɪnəs
rich in, covered with, or producing oil; oily