Fisher rsquo s quantity theory is explained by his famous equation given as ........

General Studies (CGL) General Science

Fisher’s quantity theory is explained by his famous equation given as ________.

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Combined Graduate level Examination 2023 Tier I

MP = VT

MV = PT

MT = PV

PV = MV

- MV = PT

- This is the correct representation of Fisher’s quantity theory of money.

- 'M' is the money supply.

- 'V' is the velocity of money.

- 'P' is the price level.

- 'T' is the transaction volume.

- MP = VT

- This equation does not correctly represent Fisher’s theory.

- It incorrectly swaps the relationships of components.

- MT = PV

- This is not a valid representation.

- It misplaces the terms in Fisher's equation.

- PV = MV

- Incorrect arrangement.

- Does not validly represent the relationships in the theory.

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