In the monetarist equation of exchange, MV is the monetarist counterpart of:
A) Money supply
B) Aggregate expenditures
C) Total saving
D) Government spending

Question

Quizplus · Accepted Answer

The monetarist equation of exchange is MV = PQ, where MV represents the total money supply times the velocity of money, which is equivalent to aggregate expenditures or nominal GDP (PQ).

In the Monetarist Equation of Exchange, MV Is the Monetarist