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Economic- The simple quantity theory of money predicts that changes in?? Thank you?

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The simple quantity theory of money predicts that changes in

the money supply lead to strictly proportional changes in the price level.

the money supply do not affect the price level.

the price level lead to strictly proportional changes in velocity and GDP.

velocity lead to nearly proportional changes in the money supply.

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  1. the money supply lead to strictly proportional changes in the price level


  2. quantity theory of money is mv=py

    as v and y are considered constant so any change in m is going to create proportionate change in p

    so

    changes in the money supply lead to strictly proportional changes in the price level.
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