The equation of exchange (MV = PY) is:
A) a theory, because no one knows what the value of V is.
B) used by Keynesian economists to justify the monetarist transmission mechanism.
C) only held if V is constant.
D) an accounting identity and is by definition true.
Correct Answer:
Verified
Q27: According to Keynes:
A) monetary policy acts directly
Q28: Which of the following is an important
Q30: Which of the following is true?
A) Keynesians
Q31: Most monetarists recognise that:
A) the velocity of
Q33: Monetarists and classical economists assume that:
A) stimulative
Q34: Classical economists traditionally believed that:
A) there are
Q35: The belief that the velocity of money
Q37: According to the quantity theory of money,
Q87: According to the quantity theory of money,
Q90: While the classicists believed that both velocity
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents