In the monetarist equation of exchange, MV is the monetarist counterpart of
A) money supply.
B) aggregate expenditures.
C) total saving.
D) government spending.

Question

Quizplus · Accepted Answer

In the monetarist equation of exchange (MV = PQ), MV represents the money supply (M) multiplied by its velocity (V), which is the rate at which money circulates in the economy. This product is the monetarist counterpart of aggregate expenditures in the economy, as it reflects the total amount of spending.

In the Monetarist Equation of Exchange, MV Is the Monetarist