The equation of exchange is
A) AS = AD.
B) Saving = Income - Spending.
C) MV = PQ.
D) $A D = C + I _ { g } + G + X _ { n }$

Question

Quizplus · Accepted Answer

The equation of exchange is MV = PQ, where M is the money supply, V is the velocity of money, P is the price level, and Q is the quantity of goods and services exchanged. This equation represents the idea that the amount of money spent on goods and services (MV) must equal the total value of goods and services produced (PQ).

The Equation of Exchange Is A) AS = AD AD=C+Ig+G+XnA D = C + I _ { g } + G + X _ { n }AD=C+Ig​+G+Xn​

The Equation of Exchange Is
A) AS = AD $A D = C + I _ { g } + G + X _ { n }$