The equation of exchange is a model that shows the relationship between money supply, ... It shows that inflation is proportional to money supply changes and that the demand for money has two ...

Learn about and revise ratio, proportion and rates of change with this BBC Bitesize GCSE Maths Edexcel study guide.

The quantity theory of money is a theory that variations in price relate to variations in the money supply. Learn more about the relationship between money and inflation.

If we want to make \({time}\) the subject of the equation, we would have to divide both sides of the equation by 2. ... Graph B shows a proportional relationship while Graph A does not.