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    Exam 20: Quantity Theory, Inflation, and the Demand for Money
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    Give the Equation of Exchange and Explain the Variables Used
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Give the Equation of Exchange and Explain the Variables Used

Question 93

Question 93

Essay

Give the equation of exchange and explain the variables used in it. Why we call it an identity?

Correct Answer:

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The equation of exchange is given by M ×...

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