21 The founder of the Modern Quantity Theory of Money is

Milton Friedman

22 The Quantity Theory of Money establishes the relationship between what?

Quantity of money in an economy and the level of prices

23 Pigou’s cash balance equation is

M = KR/P

24 In the Fisher’s equation of exchange, MV = PT, what T stands for?

Volume of trade

25 What cause cost push inflation?

Increases in the prices of inputs

26 The concept of real balance effect was introduced by

C. Pigou

27 The concept of quantity theory of money in cash transaction approach is usually associated with

Irving Fisher

28 What type of relationship exists between the market price of bond and the market rate of interest?

Inverse

29 Under the liquidity trape conditions the degree of elasticity in respect of speculative demand for money is

Infinite

30 A retail price index is a good measure of?

Changes in consumer’s cost of living