What Does the Equation of Exchange Say

question 45

Multiple Choice

What does the equation of exchange say?

• A)That if the economy is at full employment,then an increase in M will cause a proportionate decrease in P.
• B)MP = VQ.
• C)That the velocity and the supply of money vary directly with one another.
• D)MV = PQ.
• E)That other things being equal,the price level varies inversely with the supply of money.

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Definitions:

Reclaim

The process of getting something back or asserting one's rights to a previously ceded property or state.

Replevin

A legal remedy involving the recovery of specific goods or chattels wrongfully taken or detained, allowing the rightful owner to regain possession.

Unlawfully Withheld

Illegally retained or kept possession of something that should have been returned or released.

Wrongfully Rejected

The improper refusal of a contracting party to accept performance or delivery of contracted goods or services.