What Does the Equation of Exchange Say

Multiple Choice

What does the equation of exchange say?

A) That if the economy is at full employment,then an increase in M will cause a proportionate decrease in P.
B) MP = VQ.
C) That the velocity and the supply of money vary directly with one another.
D) MV = PQ.
E) That other things being equal,the price level varies inversely with the supply of money.