The equation of exchange may be expressed as
a. MV = nominal GDP.
b. M + V = P/Q.
c. V = nominal GDP/price index.
d. M/V = P/Q.
e. MV = real GDP.
Answer: A
The equation of exchange may be expressed as
a. MV = nominal GDP.
b. M + V = P/Q.
c. V = nominal GDP/price index.
d. M/V = P/Q.
e. MV = real GDP.