Term
|
Definition
| A theory asserting that the quantity of money available determines the price level and that the growth rate in the quantity of money available determines the inflation rate |
|
|
Term
|
Definition
Variables measured in monetary units
|
|
|
Term
|
Definition
| Variables measured in physical units |
|
|
Term
|
Definition
| The theroretical seperation of the nominal and real variables |
|
|
Term
|
Definition
| The proposition that changes in the money supply do not affect real variables |
|
|
Term
|
Definition
| The rate at which money changes hands |
|
|
Term
|
Definition
Which relates the quantity of money, the velocity of money and the dollar value of the ecoconomy's output of goods and services
M x V = P x Y |
|
|
Term
|
Definition
| The revenue the government raises by reating money |
|
|
Term
|
Definition
| the one-for-one adjustment of the nominal interest to the inflation rate |
|
|
Term
|
Definition
| the resources wasted when inflation encourages people to reduce their money holdings |
|
|
Term
|
Definition
| the cost of changing prices |
|
|
