# Thread: Separable equation - amount of money in circulation

1. ## Separable equation

Nvm.

2. If we indicate with $M$ the amount of money in circulation and with $\delta$ the tha quantity in per cent that circulates throgh the banks in a day, the quantity of new currency generated in a day is...

$x^{'} = \delta (M - x)$

... that can be written in standard form as...

$x^{'} + \delta\cdot x = \delta \cdot M$ (1)

The (1) is a linear first order DE that can be solved in usual fashion...

Kind regards

$\chi$ $\sigma$