Real money balances

Real money balances. The quantity of money expressed in terms of the quantity of goods and services it can buy; the quantity of money divided by the price level (M/P).

Definition

According to Macroeconomics by Mankiw (7th edition),

Real money balances. The quantity of money expressed in terms of the quantity of goods and services it can buy; the quantity of money divided by the price level (M/P).