If the money supply is $400,velocity is 6,then in the equation of exchange,PQ is

Name: If the money supply is $400,velocity is 6,then in the equation of exchange,PQ is
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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 level of real output. Given M = $400 and V = 6, we can rewrite the equation as PQ = MV = $400 x 6 = $2,400. Therefore, the answer is choice C, $2,400.

If the Money Supply Is $400,velocity Is 6,then in the Equation