The equation of exchange ________.
A)states that the quantity of money divided by velocity must equal nominal income in a given year
B)is only an identity if we do not understand the determinants of velocity
C)shows that nominal income must equal real money balances times the number of times a dollar turns over in a year
D)all of the above
E)none of the above

Question

Quizplus · Accepted Answer

The Answer of The equation of exchange ________.
A)states that the quantity of money divided by velocity must equal nominal income in a given year
B)is only an identity if we do not understand the determinants of velocity
C)shows that nominal income must equal real money balances times the number of times a dollar turns over in a year
D)all of the above
E)none of the above

The Equation of Exchange ________