The Cambridge and Fischer versions of the quantity theory are identical if

Question

Quizplus · Accepted Answer

The Cambridge and Fischer versions of the quantity theory of money become identical under the assumption that V (velocity of money in the Fisher equation) is equal to 1/k, where k is the Cambridge cash-balance ratio (the proportion of income people wish to hold as money). This relationship inversely links the velocity of money in the Fisher equation to the cash-balance approach of Cambridge, making them conceptually identical under this condition.

The Cambridge and Fischer Versions of the Quantity Theory Are