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

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The quantity theory of money and prices suggests that changes in the money supply will have a proportional effect on the price level in the long run, assuming that velocity and real output are constant. Therefore, a 10 percent increase in the money supply is expected to result in a 10 percent increase in prices. Option A and B are incorrect because the theory assumes that real output is constant, and Option D is incorrect because changes in velocity are not directly related to changes in the money supply.

According to the Quantity Theory of Money and Prices, a 10