The velocity of money can be calculated from the quantity equation with: A) P_tY_t B) P_tY_t M_t C) M_t /P_tY_t D) P_tY_t /M_t E) M_t

Name: The velocity of money can be calculated from the quantity equation with: A) P t Y t B) P t Y t M t C) M t /P t Y t D) P t Y t /M t E) M t
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Question

Quizplus · Accepted Answer

The velocity of money is calculated as the ratio of nominal GDP (P_tY_t) to the money supply (M_t), which is represented by option D.

The Velocity of Money Can Be Calculated from the Quantity