Answer:
d
Explanation:
Solution:-
- The Quantity of theory of money states:
M * V = P * Y
Where,
M = Money supply
V = Velocity of money exchange
P = The price level
Y = Real GDP
- By re-arranging the formula and solving for "V" we have:
V = P*Y / M
- The expression on right hand side increases if exchange of dollars increases.
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