Explain equation of exchange based upon velocity of money

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Reference no: EM131162367

(A) show and explain the equation of exchange based upon the 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 anf use numbers to support your answer.

(c) Eventually this model was used to develop a demand for money theory. Why was this model not a good predictor of the demand for money?

Reference no: EM131162367

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