The relationship between money supply (M), price level (P), real GDP (Y), and velocity of money (V) is given by:

Name: The relationship between money supply (M), price level (P), real GDP (Y), and velocity of money (V) is given by:
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Question

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The correct relationship is given by the equation MV = PY, which states that the money supply (M) times the velocity of money (V) equals the price level (P) times the real GDP (Y). This is known as the equation of exchange in economics.

The Relationship Between Money Supply (M), Price Level (P), Real