determine velocity approach to money demandthe


Determine Velocity Approach to Money Demand.

The Velocity Approach to Money Demand:

The velocity of money:

V = (P × Y)/ M

The real quantity of money demanded is proportional to real aggregate spending.

M × V = P × Y

M/P = 1/V × Y

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Macroeconomics: determine velocity approach to money demandthe
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