This is a theory that developed in the 1920s by British economist John Maynard Keynes. It states that when a change in a money supply occurs there is an increase in the demand for money. The result is that the supply of money rises and the money rate, which was previously set to a fixed level, increases as well.
It turns out that the theory of Keynes’ time was a lot more correct than we may have thought and that the number of 3 percent increases in money supply for the past 80 years was actually just a bit lower than we thought. We don’t really know what the right number is, and we still don’t really know enough about the world economy to be even close.
The number that makes sense is 1 percent. That is 1 trillion dollars per year. In the 1960s it was an average of 3 percent, in the 1970s it was 4.7 percent, and in the 1980s it was 4.8 percent. In the early 1990s it was 5.1 percent, and by the mid-1990s it was 5.6 percent. And this is just the money supply.
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The main point I want to make about money is that it doesn’t equal money. Every currency can be thought of as a different amount of money. For example, if you have 10 dollars, you might think you have 100 dollars. And that’s just one way to think of it. A different way is to think of money as the amount of money you have available for use, like a balance sheet.
We can think of money as the amount of money that is available for use. But like any other resource, money is more than just a number. It can be treated as a variable that can be controlled. When you control it, for example controlling the amount you use, you can use it to your advantage. For example, if you have a high balance in your checking account, then you can pay yourself a lot more and have more money to purchase more expensive items.
Because of money, you can spend it. Even if you don’t buy it, you can still spend it. For example, if you bought a house, you could spend an entire month buying it, which is not uncommon in a house buying situation. However, if you buy a house, you can spend the money you have using the house for a few minutes. To use a math term, you can spend more money than you are spending.
Money is money, and there is nothing good about spending it. You are not expected to spend money that you can otherwise not afford. To be able to spend more money you have to spend more money. In a world where all money is created equal, this means that even if you invest all of your money (which is not what the supply supply theory says) you can only spend some of it.
This is called the “quantity theory of money” and it states that a change in the money supply will result in a change in the purchasing power of the money. The amount of money you are spending today, is always greater than the amount you are spending next week because you are spending more money today.
It’s a little hard to believe that this is the theory of money, but it seems to be true. In fact, it could be the case that the quantity theory is a little over-simplified. If you think about it, it’s no different than any theory of economics that is based on supply and demand. Supply and demand, according to the theory, are the only things that matter in economics.
