Dream Banker

02/09/2025

नवीन सार्वजनिक ब्याबस्थापन
゚viralシviralシfypシ゚viralシalシ
#लेखनसिप

#शाखाअधिकृत

02/09/2025

विकास ब्याबस्थापन
#लेखनसिप
#शाखाअधिकृत

゚viralシviralシfypシ゚viralシalシ

02/09/2025

बित्तीय संघीयता
#शाखाअधिकृत
#लेखनसिप


゚viralシviralシfypシ゚viralシalシ

02/09/2025

06/08/2025

शाखा अधिकृत २०८२।०४।२१ गत्ते सोधेको चौथो पत्र समाधान✅
✍️ विजय लुइटेल - Bijay Luitel
#शाखाअधिकृत #लेखनसिप

05/08/2025

शाखा अधिकृत २०८२।०४।१९ गत्ते सोधेको दोश्रो पत्र समाधान✅
✍️ विजय लुइटेल - Bijay Luitel
#शाखाअधिकृत #लेखनसिप

13/04/2025

Quantity theory of money
***************************

The quantity theory of money explains the relationship between the money supply and the price level in the economy and shows that the changes in money supply directly affects the price level.

M ×V=P×Y

M=money supply
V=velocity Of money (how money frequently circulate in the economy)
P=price level
Y=real output (GDP)

1.Assumptions

In the short run , the velocity of money (V) is stable or constant

Output (Y)Is not affected by the change in the money supply. Output is determined by the real factors ( such as labor , capital)

Velocity of money and output remain constant , Price level is affected by the change in the money supply .When money supply increases in the economy , price level also increases and when money supply decreases , price level also decreases .

2.Limitations

This theory ignores the money supply affects the interest rate and credits market

People may hold money for speculative and precautionary motives, but this theory neglects the demand for money.

Inflation occurs in the economy for various reasons. But this theory only shows money supply as the cause of inflation.

#
aspirant

18/11/2024

Market failure

18/11/2024

Exam schedule

18/11/2024

Financial Facility