The Equation of Exchange States That
A)money in Circulation $\times$ Prices = Velocity

question 91

Multiple Choice

The equation of exchange states that

• A)money in circulation \(\times\) prices = velocity \(\times\) income
• B)money in circulation \(\times\) income = velocity \(\times\) prices
• C)real GDP = money in circulation \(\times\) velocity
• D)nominal GDP = money in circulation \(\times\) velocity
• E)real GDP = prices \(\times\) money in circulation \(\times\) velocity

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