Arthur Pigou proposed a measurement defined as this value plus the amount of government bonds, all divided by the price levels, and hypothesized that an increase in that measurement would increase consumption. The product of this value and the velocity of money equals the product of the price level and the amount of real expenditure according to th
Arthur Pigou proposed a measurement defined as this value plus the amount of government bonds, all divided by the price levels, and hypothesized that an increase in that measurement would increase consumption. The product of this value and the velocity of money equals the product of the price level and the amount of real expenditure according to the equation of exchange. Milton Friedman suggested that this value should be (*) increased by a fixed percentage each year. The increase in this value is slowed or sped up, respectively, in expansionary and contractionary monetary policy. For 10 points, name this measurement of the amount of monetary assets in an economy at a given time.
Arthur Pigou proposed a measurement defined as this value plus the amount of government bonds, all divided by the price levels, and hypothesized that an increase in that measurement would increase consumption.
money supply [or: money stock; prompt on: "M"]