If Real Output and Velocity Are Stable and Predictable,then the Equation

question 163

Multiple Choice

If real output and velocity are stable and predictable,then the equation of exchange can be used to derive a simple relationship between

• A)the money supply and the price level
• B)the money supply and the interest rate
• C)the money supply and the foreign exchange rate
• D)velocity and real GDP
• E)velocity and nominal GDP

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