Fisher held that this entity was dependent on technical conditions, while Pigou asserted that it was equivalent to the ratio of income to money stock.
Fisher held that this entity was dependent on technical conditions, while Pigou asserted that it was equivalent to the ratio of income to money stock. Keynes theorized that the income variety of this was stable but the demand deposit variety was not. The Circular variety of this quantity excludes most financial transactions, and as this increases, the (*) multiplier effect increases with it due to the fractional reserve system. In the long run this measure increases even if Money Neutrality holds. According to the quantity theory of money, this value can be expressed as the product of price level and the quantity of output over the money supply or more simply as the ratio of a nation's GNP to its money supply. For 10 points, name this measure defined as the number of times a particular dollar changes hands, a value symbolized V but unrelated to a vector quantity of the same name.
Fisher held that this entity was dependent on technical conditions, while Pigou asserted that it was equivalent to the ratio of income to money stock.
{Velocity} of Money [accept {velocity} of circulation, prompt on {turnover} or {circulation} of money]