The equation M *V = P * Y is called the
A) price-demand equation.
B) money-price equation.
C) equation of exchange.
D) equation of currency.
E) money velocity equation.

Question

Quizplus · Accepted Answer

The equation M*V = P*Y is known as the equation of exchange, which relates the supply of money (M) to the price level (P) and the quantity of goods and services produced (Y). This equation is a fundamental concept in monetary theory and is used to analyze the relationship between the money supply, inflation, and economic growth.

The Equation M *V = P * Y Is Called

The Equation M V = P Y Is Called