The equation of exchange is: A) AS = AD B) Saving = Income - Spending C) MV = PQ D) AD = C + I_g + G + X_n

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The equation of exchange, also known as the quantity theory of money, is MV = PQ where M represents the money supply, V represents velocity of money, P represents the price level, and Q represents the quantity of goods and services. This equation shows the relationship between money supply, velocity of money, price level, and production of goods and services.

The Equation of Exchange Is