The quantity of money says that the real money balance

The real money balance measures the purchasing power of the money stock. For example, consider an economy that produces only bread. If the quantity of money is $10 and the price of a loaf of bread is $0.50, then the real money balance is 20 loaves of bread. The traditional quantity theory of money is represented by the quantity theory of money of the American economist Fisher and the British economist Peguy, where the Peguy effect suggests that as the price level P decreases, the real money balance (M/P) increases, and consumers feel richer and spend more (consume)