This equation states that the quantity of money M times the velocity of money V equals the price of output P times the amount of output Y. What is the basic quantity equation of money. According to the basic quantity equation of money if price and output fall while velocity increases then.
This equation states that the quantity of money M times the velocity of money V equals the price of output P times the amount of output Y.
The quantity of money will rise slowly. M V P T w h e r e. It is supported and calculated by using the Fisher Equation on Quantity Theory of Money. The quantity of money will fall.