A Study Of The Relationship Between Money Supply And Level Of National Income In Nigeria

A Study Of The Relationship Between Money Supply And Level Of National Income In Nigeria

ABSTRACT

This exploration work is intended to estimate the relationship between plutocrat force and public income in Nigeria during the period over view. View about the important of plutocrat in the working of the profitable varies greatly. In particular, the means by which plutocrat affects income and affair and the extent of the changes in plutocrat force affect the frugality is the issue of similar contestation.

Monetary policy deals with discretional control of the plutocrat force by the financial authorities in order to achieve asked profitable good( of price stability, full employment equilibrium and/ increased product affair). The policy aims at achieving some specific objects by impacting the volume of plutocrat or the fiscal system liquidity.

similar objects include the following to find out in quantitative terms, the factual relationship between plutocrat force and public income in Nigeria during the time overview.

The broad end of these specific objects is to make applicable policy recommendations.

From workshop consulted and data gathered the hunt set up out that issues of financial policy have tended to disunited economist into monetarism and Keynesians. The experimenter further discovered that there are expansionary and contra dictionary financial measures, for controlling depression and affectation independently.

farther, it was also observed that plutocrat force was a determinant factor in profitable exertion in Nigeria. The exploration work was conducted using multiple retrogression and statistical of friction procedure.

Chapter One

Preface

Background Of The Study

Views about the important of plutocrat in the working of the frugality vary greatly. In particular, the means by which plutocrat affects income and affair and the extent to which changes in plutocrat force( that is plutocrat stock) affect the frugality are two issues that have given Nise to a major debate between two group of economists distinguished by their adherence to two disagreeing bodies of profitable proposition called Keynesians and Monetarism.

The debate has been long and complicated and has progressed through several stages over the times. This debate is important counteraccusations for the effectiveness of financial policy and the significance of financial policy relative to financial policy, in affecting income, affair, employment and the rate of affectation.

The relationship between the stock of plutocrat and the position of income and affair is abecedarian to the monetarism and Keynesians debate.

Statement Of Problem

There have been a thousand and one views on the relationship between plutocrat force and certain macroeconomic variables similar as public income, price, and situations.

The contestation on the on the rule of plutocrat vis- à- vis public income and price position has been going on for quite a long time before the great depression of 1930s, economists believed that increases in the volume of plutocrat would lead to increases in the price position( affectation).

Still, during he great depression group of economists surfaced. They held that the important factor caused income and employment to change is investment.

Thus group of economists believed chapeau plutocrat isn’t an important determinant of the position of profitable exertion while a separate group with a contrary view believed that plutocrat is an important determinant of position of profitable exertion. They also believed that formerly there’s severance in the frugality, increase in plutocrat force. Leads to increases in the position of income. This group of economist supported their assertion with a lot of empirical substantiation, base on the below analysis, a lot of question arose.

These question include, is plutocrat supply an important determinant of profitable exertion in Nigeria?

Likewise, is there any relationship between plutocrat force and position of public income in Nigeria? The below exploration questions form the problem of this exploration thus; an attempt would be made to ascertain the goods of plutocrat force on the Nigerian frugality.

Ideal Of The Study

The specific objects of this exploration include the following To find out whether or not there was a relationship between plutocrat force and the position of public income in Nigeria during the period under review. The study also intended to disquisition and discover which of the views about the financial proposition holds in the Nigerian environment. It also ascertains to find out which of the financial summations affects profitable further than the others in Nigeria.