It is considered here as money (including coins), bank deposits and traveler's checks. is the speed of money. This reflects financial institutions and other economic conditions. is the deflator. It is a weighted average of the prices of all final goods and services produced in the economy. It is therefore the broadest measure of the price level in the country. is the total market value of final goods and services produced in the economy during a year. An increase in the money supply, through its impact on aggregate demand, results in an increase in the nominal value. If the velocity of money remains constant, an increase in the nominal is proportional to the increase in the money supply. To determine the impact of an increase in the money supply on the inflation/price rate, we rewrite equation (2.21) to obtain the equation