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Unformatted text preview: had introduced bank money or credit (M 1 ) and its velocity or circulation (V 1 ). The equation of exchange in its full form can then be stated as: MV + M 1 V 1 = PT But it can be assumed that MV includes both currency and credit money and hence it can be stated in its simplified form: MV = PT...
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This note was uploaded on 11/17/2011 for the course EC ec 201 taught by Professor - during the Fall '10 term at Montgomery.
- Fall '10