Match List I with List II
| List I | List II |
|
1. Classical Theory of Quantity of Money
|
a. Emphasizes the importance of money demand as being solely dependent on income and the rate of interest |
| 2. Friedman's Restatement of Quantity Theory of Money | b. A theoretical framework suggesting that there is a direct relationship between the quantity of money in an economy and the level of prices of goods and services sold. |
| 3. Transactional Equation - Irving Fisher | c. Proposes a proportional relation between money and prices, and the response of the velocity of money circulation to changes in the quantity of money is unpredictable. . |
| 4. Cambridge Cash-Balance Approach | d. Presents an equation stating that the total spending in an economy is a product of money in circulation, velocity of its circulation, and the price level |
1
1-a, 2-b, 3-c, 4-d
2
1-b, 2-c, 3-a, 4-d
3
1-b, 2-a, 3-d, 4-c
4
1-b, 2-c, 3-d, 4-a