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Inverse relationship

An inverse or negative relationship is a mathematical relationship in which one variable decreases as another increases. For example, there is an inverse relationship between education and unemployment that is, as education increases, the rate of unemployment decreases.Inverse relationships and their counterpart, direct relationships, are widely used in the physical sciences to describe the relationship between two variables in an equation.Inverse relationships are also used in ecology when describing the relationship between two species. An inverse relationship is when the population of one species increases and causes the population of another species to decrease.

Money Key

Key money is used differently in different parts of the world. It sometimes means money paid to an existing tenant who assigns a lease to a new tenant where the rent is below market. It sometimes means a bribe to a landlord. In other parts of the world it is used synonymously with normal security deposits, which are used to cover nonpayment of rent and excessive damage to a rental unit.

Velocity of money

The velocity of money is the average frequency with which a unit of money is spent in a specific period of time. Velocity affects the amount of economic activity associated with a given money supply. When the period is understood, the velocity may be present as a pure number; otherwise it should be given as a pure number over time. In the equations of exchange, velocity of money is one of the key variables determining inflation. If, for example, in a very small economy, a farmer and a mechanic, with just $50 between them, buy goods and services from each other in just three transactions over the course of a year
Mechanic buys $40 of com from farmer.
Farmer spends $50 on tractor repair.
Mechanic spends $10 on barn cats from farmer.
Then $100 changed hands in course of a year, even though there is only $50 in this little economy. That $100 level is possible because each dollar was spent an average of twice a year, which is to say that the velocity was 2 / yr.
where,
Is the velocity for transactions counting towards national or domestic product.Is nominal national or domestic product, and each such transaction is made up of a price part times a quantity purchased part.(Analogously with PT, given the classical dichotomy, PQ may be factored into a product .The determinants and consequent stability of the velocity of money are a subject of controversy across and within schools of economic thought. Those favoring a quantity theory of money have tended to believe that, in the absence of inflationary or deflationary expectations, velocity will be technologically determined and stable, and that such expectations will not generally arise without a signal that overall prices have changed or will change.