The equation of exchange is
A)quantity supplied equals quantity demanded
B)quantity bought equals quantity sold
C)M $\times$ V = P $\times$ Y
D)C $\times$ I + G = Y
E)input equals output

Question

Quizplus · Accepted Answer

The equation of exchange is a monetary model that shows the relationship between the money supply, velocity of money, price level, and real output. The equation is MV = PY, where M is the money supply, V is the velocity of money, P is the price level, and Y is real output. Option C represents the equation of exchange.

The Equation of Exchange Is A)quantity Supplied Equals Quantity Demanded ×\times×

The Equation of Exchange Is
A)quantity Supplied Equals Quantity Demanded $\times$