Prof. D.H. Robertson’s equation is slightly different form from that of Prof. Pigou. Robertson’s equation is as follows:

where stands for the price level. T represents the total amount of goods and services to be bought during one year. K represents that proportion of T which the people desire to hold in the form of cash.

The equation is considered better than that of Pigou because of its easy comparability with the of Fisher.

For more help in Robertson’s Equation click the button below to submit your homework assignment