Which of the following identities represents the quantity theory of money? A) MP = Yv B) Mv = PY_R C) P = M D) Mv = Y_R

Question

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The quantity theory of money states that the price level is directly proportional to the money supply and inversely proportional to the velocity of money. The equation that represents this relationship is Mv = PY_R, where M is the money supply, v is the velocity of money, P is the price level, and Y_R is real output.

Which of the Following Identities Represents the Quantity Theory of Money