The Fisher equation of exchange is a key macroeconomic identity representing the Quantity Theory of Money. It relates the money supply (MMM), the velocity of circulation (VVV), the general price level (PPP), and the real value of national output (QQQ).
Which of the following represents the correct mathematical formulation of this relationship?
MV=PQMV = PQMV=PQ
MP=VQMP = VQMP=VQ
MQ=PVMQ = PVMQ=PV
VP=MQVP = MQVP=MQ