What is the quantity equation?
A) M × V = P × Y
B) M × P = Y × V
C) P × V = M × Y
D) M × Y = P × V

Name: What is the quantity equation? A) M × V = P × Y B) M × P = Y × V C) P × V = M × Y D) M × Y = P × V
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Question

Quizplus · Accepted Answer

The quantity equation, also known as the equation of exchange, states that the money supply (M) multiplied by the velocity of money (V) equals the price level (P) multiplied by real output (Y). This equation can be rearranged in different ways, but the correct form is M x V = P x Y.

What Is the Quantity Equation