Skip to content
MathsGenie logo
Open app

Course home

  1. A Level
  3. Economics OCR
  5. Question bank

Money and interest rates

EasyMedium
1234567891011121314151617181920212223
Question 14

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

Money and interest rates Questions

  1. A Level
  2. /Economics
  3. /Money and interest rates