According to the Equation of Exchange, the

question 2

Multiple Choice

According to the equation of exchange, the

• A) quantity of money multiplied by the inflation rate equals nominal GDP.
• B) velocity of circulation is always smaller than the inflation rate.
• C) quantity of money divided by the inflation rate equals real GDP.
• D) quantity of money multiplied by the velocity of circulation equals nominal GDP.
• E) quantity of money minus the velocity of circulation equals real GDP minus the price level.

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A format commonly used in interviews, discussions, and documents where questions are posed and then answered.

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