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The Equation of Exchange Indicates That
A) MQ equals VPM Q \text { equals } V P \text {. }

Question 53

Multiple Choice

The equation of exchange indicates that


A) MQ equals VPM Q \text { equals } V P \text {. }
B) the velocity of money and the supply of money vary proportionately with one another.
C) other things being equal, an increase in V will increase P and/or QP \text { and/or } Q \text {. }
D) other things being equal, M and P are inversely related.

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