The Identity That Expresses the Quantity Theory of Money Is

question 106

Multiple Choice

The identity that expresses the quantity theory of money is:

• A) money supply × money velocity = average price × quantity of goods and services.
• B) money supply + money velocity = average price - quantity of goods and services.
• C) money supply - money velocity = average price - quantity of goods and services.
• D) money supply ÷ money velocity = average price ÷ quantity of goods and services.

---

Definitions:

Carrying Amount

The net value of an asset or liability according to a company's balance sheet, also known as book value.