Online course on the Real Incomes Approach to Economics

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Three assertions There are three common statements, which are related to the QTM variables, which are frequenly expressed by monetarists. These are that: By injecting more money (M) into the economy, demand is raised leading to more economic growth. M can increase to high levels which can result in general price rises in goods and services, or inflation That by restricting M through raised interest rates or taxation, inflation will decline and the economy will return to a "natural equilibrium"