According to the quantity theory of money, a 10 percent increase in the quantity of money ultimately leads to a 10 percent increase in

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According to the quantity theory of money, the increase in the quantity of money leads to an equal percentage increase in the price level. The theory assumes that the velocity of money and real GDP are constant in the short run. Therefore, option A and D can be eliminated. The theory also does not specify any impact on real national income. Hence, option C can also be eliminated.

According to the Quantity Theory of Money, a 10 Percent