Assume that velocity is constant in the long run. Which of the following equations correctly describes the quantity equation in terms of percentage rate of change? ∆ means "change in."
A) % ∆M ÷ % ∆P = % ∆Y
B) % ∆M +- % ∆P = % ∆Y
C) % ∆M - % ∆Y = % ∆P
D) % ∆M * % ∆Y = % ∆P

Question

Quizplus · Accepted Answer

The quantity equation in terms of percentage rate of change is % ∆M - % ∆Y = % ∆P, assuming velocity is constant.

Assume That Velocity Is Constant in the Long Run