Lecture 7: Quantity Theory of Money and Aggregate Demand

0.0(0)
learnLearn
examPractice Test
spaced repetitionSpaced Repetition
heart puzzleMatch
flashcardsFlashcards
Card Sorting

1/3

flashcard set

Earn XP

Description and Tags

Economics

Study Analytics
Name
Mastery
Learn
Test
Matching
Spaced

No study sessions yet.

4 Terms

1
New cards
Define Velocity of money
Velocity means the number of times each unit of the currency is used to make transactions
2
New cards
What is the formula for velocity of money?
knowt flashcard image
3
New cards
What is the Equation of Exchange?
The equation of exchange is an accounting identity because we’ve defined V such that the equation holds

(rearranging the velocity of money equation)
The equation of exchange is an accounting identity because we’ve defined V such that the equation holds (rearranging the velocity of money equation)
4
New cards
\
\

Explore top notes

Explore top flashcards