Suppose that initially the money supply is $2 trillion, the price level equals 4, the real GDP is $6 trillion in base-year dollars, and income velocity of money is 12. Then the money supply increases by $200 billion, while real GDP and income velocity of money remain unchanged.

According to the quantity theory of money and prices, calculate the new price level after the increase in moneysupply

Calculate the percentage increase in moneysupply

Calculate the percentage change in the pricelevel

The percentage changes in the money supply is ______________ percentage changes in the price level. (pick one from below)

less than the

greater than the

equal to the