The Equation of Exchange Is a Formula Indicating That the Number

question 289

Multiple Choice

The equation of exchange is a formula indicating that the number of monetary units times

• A) the number of times each monetary unit is spent on final goods and services is identical to the price level times real GDP.
• B) the price level is identical to the number of times each monetary unit is spent on final goods and services times real GDP.
• C) real GDP is identical to the price level times the number of times each monetary unit is spent on final goods and services.
• D) nominal GDP is identical to the price level times the number of times each monetary unit is spent on final goods and services.