Which of the Following Is Consistent with the Equation of Exchange

question 97

Multiple Choice

Which of the following is consistent with the equation of exchange?

• A) Total spending must equal the total sales revenues of business firms.
• B) The money supply multiplied by velocity must equal GDP.
• C) The money supply multiplied by velocity must equal the price level times Real GDP.
• D) a and b
• E) a,b and c

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Definitions:

Dormant Commerce Clause

A legal doctrine that prohibits states from enacting legislation that discriminates against or excessively burdens interstate commerce.

State Law

The body of law enacted by each state or territory in the United States, governing within its boundaries and apart from federal law.

In-State Growers

Agricultural producers or farmers who operate within the boundaries of a particular state, often in the context of regulations or incentives specific to that state.

Congress Authority

The legal and constitutional powers granted to the United States Congress, including making laws, declaring war, and regulating commerce.