The quantity equation states that:

Name: The quantity equation states that:
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The quantity equation, often represented as MV = PQ, states that money (M) times its velocity (V) equals the nominal GDP, which is the product of the price level (P) and the quantity of goods and services produced (Q). This equation is a fundamental concept in the theory of money and is used to understand the relationship between the money supply and economic activity.

The Quantity Equation States That