The equation M *V = P * Y
A) has been confirmed by empirical data.
B) is true as a matter of definition.
C) is only approximately true in reality.
D) is a rule of thumb for guiding government policy.
E) is a controversial hypothesis.

Question

Quizplus · Accepted Answer

The equation is written in a mathematical format that suggests it is true as a matter of definition. There is no mention of empirical data or controversy, nor does it appear to be a rule of thumb for guiding government policy. While it may only be approximately true in reality, this is not implied by the equation itself.

The Equation M *V = P * Y

The Equation M V = P Y