If output goes up by 2% and the quantity of money goes up by 5%, while velocity stays constant, what are the approximate percentage increases in the price level and in the money value of national income?
- Aprice level 2%; money value of national income 5%
- Bprice level 2%; money value of national income 7%
- Cprice level 3%; money value of national income 5%
- Dprice level 3%; money value of national income 7%