2. State and explain Friedman's Theory of Inflation. State and explain Fisherian Theory of Interest Rate. Friedman’s theory of inflation is that there is a lot of money chasing too few goods. For example, diamonds are dropping their prices to every household, because every one can afford the price to buy more diamonds, so
2. State and explain Friedman's Theory of Inflation. State and explain Fisherian Theory of Interest Rate. Friedman’s theory of inflation is that there is a lot of money chasing too few goods. For example, diamonds are dropping their prices to every household, because every one can afford the price to buy more diamonds, so