Starting from the dynamic equations of electromagnetics we derive mutual impedance formulas that include the effects of induced polarization (IP) and electromagnetic (EM) coupling. The mutual impedance formulas are given for four geometries: a fullspace, a cylinder in a fullspace, a halfspace, and a layer over a halfspace. IP effects are characterized by a Cole-Cole model, the properties of which are fully investigated. From the general mutual impedance formulas specific limiting forms are defined to characterize the IP and EM effects. Using these limiting forms a framework is developed to justify the addition or multiplication of the two effects. The additive and multiplicative models are compared in the cylinder and layer geometries with the conclusion that the additive model proves to be more accurate over a wider range of frequencies than the multiplicative model. The nature of the IP and EM effects is illustrated in all four geometries showing the effects of relevant parameters. In all cases it is shown that the real part of the mutual impedance contains important IP information that is less influenced by EM effects. Finally the effects of boundaries are illustrated by the cylinder and layer geometries and a theory is developed to incorporate EM effects and IP effects from multiple regions which utilizes frequency dependent real dilution factors. We also include a brief review of some EM "removal" schemes and dilution theory approximations.