What is the basic idea of the quantity theory of money in relation to the MV=PY equation?

What is the basic idea of the quantity theory of money in relation to the MV=PY equation?

• A. If velocity and real output are stable, increasing money supply raises the price level; in the long run, MV may affect P.
• B. Velocity is the only determinant of the price level.
• C. The money supply has no effect on prices in the long run.
• D. Output is determined entirely by the money supply.

Answer: (A)