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JAMB Economics 2019 Paper

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Question : 54

Total: 80

The second equation of exchange is__________

MV = PT
P = $\frac{M}{KR}$
P = $\frac{MV}{T}$
P=MV

Solution:

The second equation of exchange of money is P = $\frac{M}{KR}$

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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