According to the quantity theory of money,any change in the price level may be explained by changes in the

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According to the quantity theory of money, the price level is directly proportional to the money supply. Therefore, any change in the price level can be explained by changes in the money supply. The prime rate (A) and real interest rate (B) may influence spending and inflation, but they are not direct factors in the quantity theory of money. The velocity of money (D) is the rate at which money is exchanged between individuals and firms, and while it is a factor in the theory, it does not directly cause changes in the price level.

According to the Quantity Theory of Money,any Change in the Price