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You are considering moving off campus.You have found a one-bedroom apartment very near campus that is clean and safe.However,you do not want to live alone.A one-bedroom apartment is roomy enough to have one or two roommates.The manager discourages having more than one individual in an apartment and so charges rent per person.The relationship between the number of roommates,the total cost,and the cost per person is: This is an example of
Crude Quantity Theory
A theoretical framework suggesting that changes in money supply have a direct, proportional effect on the price level in an economy.
V and Q
Symbols often used in equations and formulas, V typically represents volume and Q can represent quantity.
Discretionary Policies
Economic policies based on ad hoc decisions by government or policymakers rather than set by rules.
Rational Expectations
The economic theory that individuals make decisions based on their expectations of future economic conditions, which are formed by using all available information.
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