Which of the Following Is Consistent with the Equation of Exchange

question 97

Multiple Choice

Which of the following is consistent with the equation of exchange?

• A) Total spending must equal the total sales revenues of business firms.
• B) The money supply multiplied by velocity must equal GDP.
• C) The money supply multiplied by velocity must equal the price level times Real GDP.
• D) a and b
• E) a,b and c

---

Definitions:

Largest Source

Refers to the main or biggest origin of something, such as the largest source of revenue for a business or the largest source of pollution in an area.

Sales Tax

A tax levied on the cost (at retail) of a broad group of products.

Basic Source

Refers to the primary or fundamental origins of information or data used in research and analysis.

Property Tax

A tax on the value of property (capital, land, stocks and bonds, and other assets) owned by firms and households.