| Equation of exchange | The equation stating that nominal income equals the quantity of money times the velocity of money; MV = PY.
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| Lucas critique | Economist Robert Lucas's observation that changes in policymakers' behavior will change people's expectations, altering their behavior and the observed relationships among economic variables.
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| Nominal Gross Domestic Product | The market value of final goods and services produced in the economy during a year measured at current (dollar) prices.
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| Portfolio demand for money | The theory of the demand for money based on the use of money as a store of value; the theory that treats money as an asset analogous to a bond.
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| Precautionary demand for money | The theory of the demand for money based on the idea that people hold money to insure they have resources when faced with unexpected events.
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| Quantity theory of money | The theory that changes in nominal income are determined by changes in the quantity of money.
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| Transactions demand for money | The demand for money based on the use of money as a means of payment, for transactions purposes.
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| Velocity of money | The average number of times each unit of money is used per unit time.
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