The Equation of Exchange States That the Relationship Among the Money

question 14

Multiple Choice

The equation of exchange states that the relationship among the money supply (M) ,the price level (P) ,the velocity of money (V) and real output (Y) is

• A) MP = VY
• B) M/P = YV
• C) PV = MY
• D) MV = PY
• E) Y/V = MP

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Definitions:

Regurgitation

The backward flow of blood through a valve in the heart that does not close properly, or the return of undigested food from the esophagus to the mouth.

Difficulty Swallowing

Known medically as dysphagia, this term describes trouble moving food, liquid, and saliva from the mouth to the stomach.

Electroencephalography

A procedure that records the electrical activity of the brain as a tracing called an electroencephalogram, or EEG, on a strip of graph paper.

Electrical Activity

The movement of electrical charges or signals through a given medium, foundational for the functioning of the nervous system and the heart.