The Equation of Exchange

question 61

Multiple Choice

The equation of exchange

• A)states that the price level times velocity equals GDP divided by the interest rate
• B)states that total spending equals real GDP
• C)states that money supply times velocity equals real GDP
• D)is an identity,not a theory
• E)becomes the quantity theory of money on the assumption that the price level is always constant

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Definitions:

Neurotransmitter

Chemical messengers that transmit signals across a chemical synapse, from one neuron to another, influencing various bodily functions.

Ion

An atom or molecule with a net electric charge due to the loss or gain of one or more electrons.

Antagonist

An opposing force, molecule, or character that interacts in a way to inhibit or counteract an action.

Action Potential

A temporary reversal of electrical polarization of the membrane of a nerve cell or muscle cell, allowing for the transmission of signals.