The Equation of Exchange

When people purchase goods, they are selling money, and when merchants sell goods, they are buying money. The Circular Flow diagram shows that all purchases and sales involve money. (http://ingrimayne.saintjoe.edu/econ/Money/Equation.html)

When people purchase goods, they are selling money, and when merchants sell goods, they are buying money. The Circular Flow diagram shows that all purchases and sales involve money. (http://ingrimayne.saintjoe.edu/econ/Money/Equation.html)