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Agra balance of payments banking system borrowing capitalist economy changes classical theory commodities consumption cost of production crores currency curtailment deficit financing demand for money depends devaluation economic development efficiency of capital entrepreneurs equation exchange rates expected expenditure exports factors of production fall favour Fisher function imports income velocity increase India industrial inflation inflationary international trade J. M. Keynes Keynes level of income liquidity preference theory loanable funds theory marginal efficiency ment monetary equilibrium monetary policy monetary theory money in circulation money income money market period Plan POINTS TO REMEMBER Poona price level profits purchasing power parity quantity of money quantity theory rate of interest Reserve Bank rise in prices rupee savings and investment sector SELECT READINGS speculative demand store of value supply of money tariffs terms of trade theory of interest theory of money transaction under-developed country value of money velocity of money volume