Which of the following is the equation of exchange?
A) V = MY/P
B) MY = PV
C) MV = PY
D) M = VP/Y

Name: Which of the following is the equation of exchange? A) V = MY/P B) MY = PV C) MV = PY D) M = VP/Y
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Question

Quizplus · Accepted Answer

The equation of exchange is MV = PY, where M is the money supply, V is the velocity of money, P is the price level, and Y is real output or income. This equation represents the relationship between the quantity of money and the level of economic activity.

Which of the Following Is the Equation of Exchange