The second equation of exchange is__________

  • A MV = PT
  • B P = \(\frac {M}{KR}\)
  • C P = \(\frac {MV}{T}\)
  • D P=MV
jamb 2019english-language

The correct answer is B. P = \(\frac {M}{KR}\)

The second equation of exchange of money is P = \(\frac {M}{KR}\)

Where : P = Price level of consumer goods

K = The proportion of the community's total income held in money

R = The real income

M = The stock of money.

Previous question Next question