The Difference Between the Equation of Exchange and the Quantity

question 143

Multiple Choice

The difference between the equation of exchange and the quantity theory of money is that the

• A)equation of exchange assumes that the level of real GDP is constant.
• B)quantity theory of money assumes that the Fed has no control over the money supply.
• C)equation of exchange assumes that the level of nominal GDP is constant.
• D)quantity theory of money assumes that velocity is virtually constant.

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