Using the Equation of Exchange, If Velocity Is Stable in the Long

question 19

Multiple Choice

Using the equation of exchange, if velocity is stable in the long run, the inflation rate, (%∆P)
Can be expressed as

• A) %∆P = %∆M ÷ %∆Y
• B) %∆P = %∆M + %∆Y
• C) %∆P = %∆M * %∆Y
• D) %∆P = %∆M - %∆Y