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    Question

    Which of the following gives the Fisher equation of

    money?
    A PT = MV Correct Answer Incorrect Answer
    B PM = KT Correct Answer Incorrect Answer
    C PT= MK Correct Answer Incorrect Answer
    D PV = MT Correct Answer Incorrect Answer
    E PV = IK Correct Answer Incorrect Answer

    Solution

    Fisher equation is given by MV=PT , and its derivation is credited to an American, Professor Irving Fisher. It states that the money supply (M) multiplied by the velocity of circulation (V) is equal to the number of transactions involving money payments (T) times the average price of each transaction (P).

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