Answer to Question #71205 in Macroeconomics for Ramintha Bitnarajah
1.The quantity of products (goods,services), that are sold in the state during a year (Q)
2.Middle prices of goods, sold in the state during a year (P)
3.Circulation speed - velocity of money circulation (V)
The law of exchange by Irving and Fisher demonstrates how the quantity of money is determined in the economy :
M – middle volume of money, which pertains to the citizens.
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