Author Question: If M = quantity of money, V = velocity of money, P = price level, and Q = the quantity of output, ... (Read 86 times)

shenderson6 · **on:** Jun 30, 2018

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

Question 2

If market demand decreases and market supply increases, then equilibrium quantity will (be) ____ and equilibrium price will (be) ____.
a. indeterminate; decrease
b. indeterminate; increase
c. decrease; indeterminate
d. increase; indeterminate