According to the equation of exchange,the total expenditures on final goods equals the monetary value of the final goods sold.

Question

Quizplus · Accepted Answer

The equation of exchange is MV = PQ, where M is the money supply, V is the velocity of money, P is the price level, and Q is the quantity of final goods and services produced. This equation states that the total expenditures on final goods and services (PQ) must equal the monetary value of those goods and services sold (MV). Therefore, the statement is true.

According to the Equation of Exchange,the Total Expenditures on Final