If MV = PY when M is the size of the money supply, V is the velocity

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If MV = PY when M is the size of the money supply, V is the velocity of money, P is the price level and Y is national income. Rearrange the Equation of Exchange so that P = MV/Y and let V remain constant. What makes P go up?

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Exploring Economics

ISBN: 9781439040249

5th Edition

Authors: Robert L Sexton

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Posted Date: Feb 03, 2024 03:11 AM

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If MV = PY when M is the size of the money supply, V is the velocity

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Factors causing P to increase Increase in M Money Supply If the money supply M increases while V and ... View the full answer

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