If M = quantity of money, V = velocity of money, P = price level, and Q = the quantity of output, then the equation of exchange will be defined as:
a. MV = PQ
b. MQ = PV
c. MP = VQ
d. MV = P/Q
e. MQ = V/P
a
Economics
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Refer to the given graph. A movement from a to b along C 1 might be caused by a(n):
A. recession.
B. wealth effect of an increase in stock market prices.
C. increase in income tax rates.
D. increase in real GDP.
Economics
If the interest rate is positive, the present value of $10 to be received in the future is
A. less than $10. B. equal to $10. C. more than $10. D. Any of the above is possible, depending on the interest rate and when the payment is to be received.
Economics