According to the quantity theory of money,a 10-percent increase in the money stock would lead to a 10-percent rise in the

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The quantity theory of money suggests that a change in the money stock directly affects the price level and nominal variables, such as nominal GNP, but not real variables like real GNP. Therefore, both a 10-percent increase in the money wage and the price level (A) and a 10-percent rise in the level of nominal GNP (C) are consistent with this theory, making E the correct choice.

According to the Quantity Theory of Money,a 10-Percent Increase in the Money