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Write Out the Equation of Exchange

question 202

Essay

Write out the equation of exchange. What assumptions did the classical economists make about the variables that compose the equation, and what did this lead them to conclude about money and prices?


Definitions:

Compound

Molecule that has atoms of more than one element.

Molecule

The smallest unit of a chemical compound that can exist; composed of two or more atoms bonded together.

Orbital Space

The region of space around the Earth where artificial satellites and spacecrafts orbit, influenced by Earth's gravity.

Energy Level

A specific quantized state of energy that an electron in an atom can have.

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