Its rate of growth has no effect on variables like consumption or labor if it is (*) superneutral.
Robert Clower introduced a model where this thing serves as a constraint in the consumer's optimization problem. The Friedman rule calls for reducing the amount of it over time so that its nominal return is the same as the discount rate. Baumol and Tobin created a model of the demand for this thing that relies on the existence of transaction costs for switching between it and bonds. Its rate of growth has no effect on variables like consumption or labor if it is (*) superneutral. Monetarists argued that its supply was directly proportional to the price level, a notion called the "quantity theory" of this thing. The "fiat" type is unbacked by a commodity like gold or silver. M0, M1, and M2 denote forms of the "supply" of, for 10 points, what thing that can be exchanged for goods or services?
Robert Clower introduced a model where this thing serves as a constraint in the consumer's optimization problem.
money [or cash] &lt;Bailey&gt;