Equation of exchange based upon the income velocity of money

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(a) Show and explain the equation of exchange based upon the income velocity of money. (b) Briefly summarize the conditions under which changes in the supply of money are likely to exert a predictable influence upon aggregate economic activity. Be specific and use numbers to support your answer. (c) Why was this model not a good predictor of the demand for money?

Reference no: EM13984963

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