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AP Macroeconomics
Unit 5 – Long–Run Consequences of Stabilization Policies
Topic 5.3
What is the relationship between the money supply and nominal GDP in the equation of exchange (MV = PQ)?
They are inversely proportional
They are directly proportional
Their relationship depends on the level of inflation
They have no relationship
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AP Macroeconomics - 5.3 Money Growth and Inflation
Key terms
Money Supply
Nominal GDP
Equation of exchange
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About Fiveable
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Resources
Cram Mode
AP Score Calculators
Study Guides
Practice Quizzes
Glossary
Crisis Text Line
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© 2024 Fiveable Inc. All rights reserved.
AP® and SAT® are trademarks registered by the College Board, which is not affiliated with, and does not endorse this website.
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