The Equation of Exchange

question 61

Multiple Choice

The equation of exchange

• A)states that the price level times velocity equals GDP divided by the interest rate
• B)states that total spending equals real GDP
• C)states that money supply times velocity equals real GDP
• D)is an identity,not a theory
• E)becomes the quantity theory of money on the assumption that the price level is always constant

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Definitions:

Technician

A professional skilled in diagnosing and repairing technical problems in machinery, computers, and electronic devices.

Script

A small program written in one of several scripting languages that is designed to do a specific task.

Scripting Language

A programming language used to automate the execution of tasks that could alternatively be executed one-by-one by a human operator.

Floating-Point

A method of representing real numbers in a way that can accommodate a wide range of values by using a fraction, an exponent, and a base, typically used in computing to process complex calculations.