Econ Ch 30
About this set
Created by:
loverlylaur on January 10, 2009
Log in to favorite or report as inappropriate.
Order by
4 terms
Terms | Definitions |
|---|---|
 demand for money | the relationship between the interest rate and how much money people want to hold |
| equation of exchange | quantity of money (M) multiplied by its velocity (V) equals nominal GDP, which is the product of the price level (P) and real GDP (Y); MV = PY |
| velocity of money | the average number of times per year each dollar is used to purchase final goods and services |
| quantity theory of money | if the velocity of money is stable, or at least predictable, changes in the money supply have predictable effects on nominal GDP |
First Time Here?
Welcome to Quizlet, a fun, free place to study. Try these flashcards, find others to study, or make your own.