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Mathematically, the LM curve is defined by the equation / = (,), where the supply of money is represented as the real amount M/P (as opposed to the nominal amount M), with P representing the price level, and L being the real demand for money, which is some function of the interest rate and the level of real income.
In macroeconomics, money supply (or money stock) refers to the total volume of money held by the public at a particular point in time. There are several ways to define "money", but standard measures usually include currency in circulation (i.e. physical cash ) and demand deposits (depositors' easily accessed assets on the books of financial ...
LibreOffice Calc is the spreadsheet component of the LibreOffice software package. [5] [6]After forking from OpenOffice.org in 2010, LibreOffice Calc underwent a massive re-work of external reference handling to fix many defects in formula calculations involving external references, and to boost data caching performance, especially when referencing large data ranges.
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.
I is real physical investment, including intended inventory investment; G is real government spending (an exogenous variable) M is the exogenous nominal money supply; P is the exogenous price level; i is the nominal interest rate; L is liquidity preference (real money demand) T is real taxes levied; NX is real net exports
If, however, one additionally assumes that the two ratios C/D and R/D are exogenously determined constants, the equation implies that the central bank can control the money supply by controlling the monetary base via open-market operations: In this case, when the monetary base increases by, say, $1, the money supply will increase by $(1+C/D)/(R ...
The equation for the AD curve in general terms can be written as: = (,,,), where Y is real GDP, M is the nominal money supply, P is the price level, G is real government spending, T is real taxes levied, and Z 1 any other variables that affect aggregate demand. [11]
The theory is often stated in terms of the equation M V = P Y, where M is the money supply, V is the velocity of money, and P Y is the nominal value of output or nominal GDP (P itself being a price index and Y the amount of real output). This equation is known as the quantity equation or the equation of exchange and is itself uncontroversial ...