Multiple Choice
What is the equation of exchange?
A) the price level x the velocity of money = the money supply x the quantity of goods and services produced
B) the money supply x the velocity of money = the price level x the quantity of goods and services produced
C) government spending = taxes + the federal budget deficit
D) the reciprocal of the desired reserve ratio = the deposit expansion multiplier
Correct Answer:
Verified
Correct Answer:
Verified
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