Definition of quantity theory in English:

quantity theory

Line breaks: quan|tity the¦ory
(also the quantity theory of money)


[mass noun] Economics
  • 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.

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Word of the day coloratura
Pronunciation: ˌkələrəˈto͝orə
elaborate ornamentation of a vocal melody