If Real GDP Grows at 3 Percent a Year, the Quantity

Multiple Choice

If real GDP grows at 3 percent a year, the quantity of money grows at 5 percent a year, and the velocity of circulation is constant, then the price level must be

A) increasing at 8 percent a year.
B) decreasing at 8 percent a year.
C) increasing at 2 percent a year.
D) decreasing at 2 percent a year.
E) increasing at 15 percent a year.