The Equation of Exchange Indicates That
A) $M Q \text { equals } V P \text {. }$

question 53

Multiple Choice

The equation of exchange indicates that

• A) \(M Q \text { equals } V P \text {. }\)
• B) the velocity of money and the supply of money vary proportionately with one another.
• C) other things being equal, an increase in V will increase \(P \text { and/or } Q \text {. }\)
• D) other things being equal, M and P are inversely related.

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