Already have an account? Get multiple benefits of using own account!
Login in your account..!
Remember me
Don't have an account? Create your account in less than a minutes,
Forgot password? how can I recover my password now!
Enter right registered email to receive password!
Q. Explain about Quantity theory of money?
One of the main elements of the classical model is quantity theory of money. Quantity theory of money connects three important variables: M, P, and Y: money supply, price level and real GDP.
P.Y is equal to nominal GDP. Assume that nominal GDP is equal to 100 for a certain year whereas the money supply is constant and equal to 20 throughout that year. Because we are using money to buy finished goods, we may determine that each monetary unit (USD or euro or whatever) has been used an average of 5 times during the year (100/20). This value is known as the velocity of money and it is signified by V. We have
V = (P.Y)/M
This isn't a theory however a definition. What makes it into a theory -quantity theory of money - is the assumption that V is a stable variable that doesn't depend on other economic variables. In the quantity theory, velocity of money is an exogenous variable.
The quantity theory of money: M.V = P.Y, V exogenous
The chief consequence of the quantity theory of money is the direct relationship amid M and P if Y is constant. For instance, if money supply increases while real GDP stays the same, P will increase exactly as much as M (in percentage).
Q. How to control Monetary policy? Remember that the money supply is equal to the money multiplier times the monetary base. We will presume that money multiplier is constant an
You have been invited by world leaders to be part of a team of international economists selected to make recommendations on how the international community might work together more
Q. Describe Keynesian cross model? Keynesian cross model is a simple version of what we call the 'complete Keynesian model' or simply the Keynesian model. Keynesian model has a
Augmented Saving An alternative way of determining equilibrium GDP is to find the level of income where the sum of desired injections equals the sum of desired leakages. Desi
The yeild of Maize is 73429 Hg/Ha, I need to translate it into bu/a, and I konw use 56lbs/bu as test weight. Please leave the process so that I know how to do it, thankyou.
U.S. employers have strongly opposed a corporatist agenda, under which employment relationships would be jointly governed by unions, employers, and government. This orientation has
The NJ Bureau of Employment gathered the following sample information on the number of hours unemployed workers spent looking for work last week. Hours Spent Searching Number of Un
1. Consider two projects. The first project pays benefits of $90 today and nothing else. The second project pays nothing today, nothing one year from now, but $100 two
Subsidy programs are likely to have a number of secondary effects in addition to the direct effect on dairy prices. What impact do you suppose farm subsidies are likely to have on
Q. Relationship between number of hours worked and unemployment? In all models we presume a negative relationship between number of hours worked and unemployment. If number of
Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!
whatsapp: +91-977-207-8620
Phone: +91-977-207-8620
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd