The Equation of Exchange Indicates That
A) MV = PQ $P \text { and/or } Q \text {. }$

question 27

Multiple Choice

The equation of exchange indicates that

• A) MV = PQ.
• B) other things equal, an increase in the demand for money will increase \(P \text { and/or } Q \text {. }\)
• C) the velocity and the supply of money vary directly with one another.
• D) MP = VQ.