The Equation of Exchange Indicates That

question 41

Multiple Choice

The equation of exchange indicates that:

• A) MV = PQ.
• B) other things equal,an increase in the demand for money will increase P and/or Q.
• C) the velocity and the supply of money vary directly with one another.
• D) MP = VQ.

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Definitions:

Ordinary Course

Activities that are considered part of the usual operations of a business or organization.

Partners Agree

The mutual consensus among all partners in a business venture on a particular decision, action, or strategy.

Sole Authority

Exclusive power or right to decide, direct, or manage something without needing approval or consent from others.

Partnership

is a legal form of business operation between two or more individuals who share management and profits.