Answer This Question Based on the Diagram and the Equation

Multiple Choice

Answer this question based on the diagram and the equation of exchange. Assume that the velocity of money is constant at 4. Suppose that the increase of aggregate supply from A AS₁ to AS₂ indicates
the economy's average increase in real output per year. According to monetarists, the proper monetary rule for price stability would be to increase the money supply by

A) zero percent per year.
B) 4 percent per year.
C) 10 percent per year.
D) 30 percent per year.