What Is the Effect of Technological Progress and Increases in the Money

Multiple Choice

What is the effect of technological progress and increases in the money supply on prices in the long run?

A) Both make the price level rise.
B) Both make the price level fall.
C) Technological progress makes the price level rise, while increases in the money supply make prices fall.
D) Technological progress makes the price level fall, while increases in the money supply make prices rise.