Money in Circulation Model

About the Money in Circulation Model

The money in circulation model is about how the money in circulation is affected by various factors that are also affected by smaller factors. The amount of money created by treasury is depended on the amount of money destroyed. This either adds or takes away from the money in circulation. The total amount spent also affects the M.I.C. which can be depended on the amount of spent and the disposable money from salary. Where those factors are varied by the average salary and savings.