According to the quantity theory of money, the price level can be written as:
A) .
B) .
C) .
D) .
E) .

Name: According to the quantity theory of money, the price level can be written as: A) . B) . C) . D) . E) .
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Question

According to the quantity theory of money, the price level can be written as:
A) . 
B) . 
C) . 
D) . 
E) .

Quizplus · Accepted Answer

According to the quantity theory of money, the equation for the price level 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 goods and services. Rearranging the equation, we get P = MV/Q. Therefore, the correct choice is C.

According to the Quantity Theory of Money, the Price Level