The Equation of Exchange (MV = PY) Is

question 104

Multiple Choice

The equation of exchange (MV = PY) is:

• A) a theory, because no one knows what the value of V is.
• B) used by Keynesian economists to justify the monetarist transmission mechanism.
• C) only held if V is constant.
• D) an accounting identity and is by definition true.

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Definitions:

Inka Empire

A large South American empire centered in modern-day Peru, known for its advanced architectural, agricultural, and administrative achievements before Spanish conquest.

Machu Picchu

An ancient Incan city located in the Andes mountains of Peru, renowned for its archaeological significance and stunning panoramic views.

Archaeological Importance

The significance of an artifact, site, or practice due to its potential to inform about the past cultures, civilizations, or histories through scientific study.

Inka Times

The period during which the Inka (Inca) civilization flourished in South America, renowned for its architecture, road systems, and sophisticated society.