Consider the Equation $\Delta$ M $\Delta$ V $\approx$ $\Delta$ P +

Multiple Choice

Consider the equation % $\Delta$ M +% $\Delta$ V $\approx$ % $\Delta$ P + % $\Delta$ Y.If the velocity of money does not change (% $\Delta$ V= 0) ,and the change in real GDP exactly keeps pace with the change in the money supply (% $\Delta$ M = % $\Delta$ Y) ,what will happen to the price level (P) ?

A) It will go up,% $\Delta$ P $\gt$ 0.
B) It will go down,% $\Delta$ P $\lt$ 0.
C) It will stay the same,% $\Delta$ P = 0.
D) It will equal the sum % $\Delta$ M+% $\Delta$ Y.
E) It will drop out of the equation.