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kykrilka [37]
2 years ago
12

Suppose that M is fixed but that P falls. According to the quantity equation which of the following could both by themselves exp

lain the decrease in P?
A. Y and V stay the same.
B. Y fell.
C. V rose.
D. V fell.
Business
1 answer:
rewona [7]2 years ago
3 0

Answer:

D. V fell.

Explanation:

According to the quantity theory :

Money Supply x Velocity = Price x Output

If money supply is fixed, price is directly proportional to velocity.

If price fell, then velocity also fell.

V fell and Y rose

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Tasya [4]

Answer:

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Explanation:

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