Fisher Version of Quantity Theory of Money (HINDI)

Fisher attached emphasis on the use of money as a medium of exchange. The quantity theory of money states that money supply and price level in an economy are in direct proportion to one another. When there is a change in the supply of money, there is a proportional change in the price level and vice-versa. M*V= P*T where, M = Money supply V = Velocity of money P = General Price level T = volume of the transactions