The equation of exchange ________.
A) states that the quantity of money multiplied by velocity must equal nominal income in a given year
B) describes a relationship that is true by definition
C) shows that real GDP must equal real money balances times the number of times a dollar turns over in a year
D) all of the above
E) none of the above
Question 2
A barter economy
A) cannot be a market economy.
B) is an economy without monetary exchange.
C) is an economy with no business firms.
D) is not a competitive economy.
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