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.

---

Definitions:

Unique Set of Needs

Specific, individual requirements or desires that vary from person to person, influencing behavior and satisfaction.

Maslow's Need Hierarchy

A theory of human motivation which states that people are motivated to fulfill basic needs before moving on to other, more advanced needs.

Incentives

Rewards or motivations provided to encourage specific behaviors or outcomes, commonly used in organizational settings to enhance performance.

Physiological Need

Basic physical requirements for human survival, such as food, water, and shelter, as identified in Maslow's hierarchy of needs.