Traditional Culture Encyclopedia - Traditional stories - A question about the quantity of traditional currency. Please help with the answer. Thank you.
A question about the quantity of traditional currency. Please help with the answer. Thank you.
D. Traditional money quantity says: Fisher equation MV=PT. Among them, M is the money supply, V is the velocity of money circulation, P is the price level, and T is the output. The M on the left side of the equation becomes 0.5M, then the right side is also
You can only multiply by 0.5 to make the equation true.
If you choose C, the right side of the equation is equivalent to multiplying by 0.5*0.5=0.25, and the equation will not hold.
Or the Cambridge equation M=KPY where K is the coefficient, P is the price, and Y is the output. The principle is the same as above.
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