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The Quantity Equation States That the

Question 29

Multiple Choice

The quantity equation states that the


A) money supply times the velocity of money equals the price level times real GDP.
B) money supply times the price level equals real GDP divided by the velocity of money.
C) money supply times the price level equals real GDP times the velocity of money.
D) money supply divided by the velocity of money equals the price level divided by real GDP.

Correct Answer:

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