In an economy in which velocity is constant and the same level of real output is produced year after year,a slow increase in the money supply would result in a:

A) constant price level.
B) slowly increasing price level.
C) rapidly increasing price level.
D) slowly increasing real GDP.
E) rapidly increasing real GDP.

Velocity

In economics, the rate at which money circulates in the economy, typically measured as the ratio of gross national product to the total supply of money.

Money Supply

The sum total of available financial assets in an economy at a particular time slot.

Price Level

A general measure of the cost of goods and services within an economy or specific market at a given time.