Equation of exchange is converted into the quantity theory of money by assuming the following variables as constants:

CA Foundation · Business Economics · MTP · May 2026
Equation of exchange is converted into the quantity theory of money by assuming the following variables as constants:
(A) A. V and T
(B) B. M and V
(C) C. M and P
(D) D. V and P

Suggested Answer and Working Notes:

Correct Answer: Option (A)

A. V and T

Topics: Money Market

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