M × V ≡P × Q, where, money supply × velocity of money = price level × real GDP.
The velocity of money is an economic metric that measures how quickly money moves in a market economy. This can be accomplished by calculating the number of times a unit of currency is spent within a given time period and tracking how frequently money circulates from one person or organisation to another.
The quantity theory of money states that the money supply and the price level in an economy are proportional to one another. A change in the supply of money causes a proportional change in the price level, and vice versa.
The velocity of money is a measure of how quickly money is exchanged in an economy. It is the number of times money is transferred from one entity to another. Money velocity also refers to how much a unit of currency is used in a given time period.
learn more about velocity of money visit:
https://brainly.com/question/28179025
#SPJ4
