According to the equation of exchange,an increase in either velocity or the money supply will

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According to the equation of exchange, GDP = (money supply) x (velocity) / (price level). If either velocity or the money supply increases, then GDP will increase as well, assuming the price level stays constant. Therefore, option A is correct. Option B cannot be correct, as an increase in the money supply will certainly affect the price level, all else equal. Option C cannot be correct, as a decrease in the price level requires that the money supply or velocity decrease, not increase. Option D cannot be correct, as an increase in either velocity or the money supply will lead to an increase in GDP, not a decrease.

According to the Equation of Exchange,an Increase in Either Velocity