Discover how the equation of exchange links money supply, velocity of money, and price levels, influencing inflation and economic activity. Learn key formulas and impacts.
In this graph, 𝑥 and 𝑦 are directly proportional. This means that when 𝑥 doubles, 𝑦 also doubles, and when 𝑥 triples, so does 𝑦. In fact, for all coordinates on this line, you could multiply or ...