If M Stand for the Money Supply, V for the Velocity

question 167

True/False

If M stand for the money supply, V for the velocity of money, P for the average selling price, and Q for the output of goods and services, the equation of exchange is MV = PQ.

---

Definitions:

Prevention Cost

Expenses incurred to avoid or minimize the number of defects in products, including costs associated with quality control and training.

Life Cycle Costing

An approach that considers all the costs associated with the lifecycle of a product or asset, from acquisition through disposal, aimed at understanding the total cost of ownership.

Target Costing

A pricing method in which market prices determine the cost constraints for product development, aiming to ensure competitiveness and profitability.

Appraisal Costs

Expenses related to the testing and inspection of products to ensure they meet quality standards.