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  2. Money supply - Wikipedia

    en.wikipedia.org/wiki/Money_supply

    In some economics textbooks, the supply-demand equilibrium in the markets for money and reserves is represented by a simple so-called money multiplier relationship between the monetary base of the central bank and the resulting money supply including commercial bank deposits. This is a short-hand simplification which disregards several other ...

  3. Equation of exchange - Wikipedia

    en.wikipedia.org/wiki/Equation_of_exchange

    In monetary economics, the equation of exchange is the relation: = where, for a given period, is the total money supply in circulation on average in an economy. is the velocity of money, that is the average frequency with which a unit of money is spent.

  4. Money multiplier - Wikipedia

    en.wikipedia.org/wiki/Money_multiplier

    The money multiplier is normally presented in the context of some simple accounting identities: [1] [2] Usually, the money supply (M) is defined as consisting of two components: (physical) currency (C) and deposit accounts (D) held by the general public.

  5. Cambridge equation - Wikipedia

    en.wikipedia.org/wiki/Cambridge_equation

    The Cambridge equation first appeared in print in 1917 in Pigou's "Value of Money". [2] Keynes contributed to the theory with his 1923 A Tract on Monetary Reform . The Cambridge version of the quantity theory led to both Keynes's attack on the quantity theory and the Monetarist revival of the theory. [ 3 ]

  6. Percentage - Wikipedia

    en.wikipedia.org/wiki/Percentage

    An increase of $0.15 on a price of $2.50 is an increase by a fraction of ⁠ 0.15 / 2.50 ⁠ = 0.06. Expressed as a percentage, this is a 6% increase. While many percentage values are between 0 and 100, there is no mathematical restriction and percentages may take on other values. [4]

  7. Supply and demand - Wikipedia

    en.wikipedia.org/wiki/Supply_and_demand

    On the other hand, [10] the money supply curve is a horizontal line if the central bank is targeting a fixed interest rate and ignoring the value of the money supply; in this case the money supply curve is perfectly elastic. The demand for money intersects with the money supply to determine the interest rate. [11]

  8. Money - Wikipedia

    en.wikipedia.org/wiki/Money

    In economics, money is any financial instrument that can fulfill the functions of money (detailed above). These financial instruments together are collectively referred to as the money supply of an economy. In other words, the money supply is the number of financial instruments within a specific economy available for purchasing goods or services.

  9. Marginal propensity to save - Wikipedia

    en.wikipedia.org/wiki/Marginal_propensity_to_save

    The MPS plays a central role in Keynesian economics as it quantifies the saving-income relation, which is the flip side of the consumption-income relation, and according to Keynes it reflects the fundamental psychological law. The marginal propensity to save is also a key variable in determining the value of the multiplier.