This equation MVPQ is an identity equation and is called the equation of exchange. Response times vary by subject and question complexity. And the T stands for the volume of transactions.
The value of money can be described by supply and demand of money the same as we determine the supply and demand of commodities.
It was then transformed into a theoretical economic model by making some assumptions. According to the basic quantity equation of money if price and output fall while velocity increases then. The equation of exchange describes the relationship among the supply of money the velocity of money the price level and income. The quantity of money will rise.