Why is the quantity theory of money not a theory of demand


Problem

1. Economics generally tells us that one must analyse the factors influencing both the demand for and supply of important variables. Why, then, might the demand for money not be of great importance from the point of view of economic policy?

2. Why is the Quantity Theory of Money not a theory of the demand for money? What is it a theory of?

The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.

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Macroeconomics: Why is the quantity theory of money not a theory of demand
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