A. MV = PT
B. P = MK/R
C. P = MV/T
D. P=MV
Correct Answer: Option B
B. P = MK/R
Explanation
The second equation of exchange of money is P = MK/R
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.
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