Theory of money and Prices:

In the theory of money we concerned with the determination of the value of money which has inverse relation with the general price level.. There are two main questions concerning the value of money, viz.,
1. how changes in the value of money(prices) is measured and
1. how the value of money is determined i.e. the factors governing price fluctuation.

Index numbers are used to determine the changes in the value of money


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