equation of exchange

Definition of equation of exchange

: a formulation in economics: the quantity of money in circulation times its average rate of turnover is equal to the average price level times the quantity of goods exchanged

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Cite this Entry

“Equation of exchange.” Merriam-Webster.com Dictionary, Merriam-Webster, https://www.merriam-webster.com/dictionary/equation%20of%20exchange. Accessed 25 Sep. 2020.

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