The Equation of Exchange Becomes the Same as the Quantity

question 480

Multiple Choice

The equation of exchange becomes the same as the quantity theory of money by assuming that the velocity of circulation ________ when the quantity of money changes and potential GDP ________ when the quantity of money changes.

• A) changes; changes
• B) changes; does not change
• C) does not change; changes
• D) does not change; does not change

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