The transaction demand for money in an economy can be written in the following form as,
, or
in the above expression v refers to:
The transaction demand for money in an economy can be written in the following form as,
, or
in the above expression v refers to:
Solution
✅ Correct Option: 1
In , where , the symbol denotes the velocity of circulation of money, i.e. the number of times a unit of money changes hands during the period. is the total value of nominal transactions and is transaction demand for money.
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