According to the Equation of Exchange,if V Is Constant,and the Economy

Multiple Choice

According to the equation of exchange,if V is constant,and the economy is at full employment,what would a 5 percent increase in the money supply do?

A) It will cause P to increase by less than 5%.
B) It will cause P to increase by more than 5%.
C) It will cause P to increase by 5%.
D) It will cause P to decrease by 5%.
E) It will not affect P.