According to the Fisher equation of exchange (MV=PQMV = PQMV=PQ), which represents the Quantity Theory of Money, suppose that a central bank increases the money supply (MMM) by 15.5%. Over the same period, due to supply-side improvements, the real value of national output (QQQ) increases by 5.0%. Assuming that the velocity of circulation (VVV) remains constant, what is the resulting percentage change in the general price level (PPP)?
An increase of 10.5%10.5\%10.5%
A decrease of 9.1%9.1\%9.1%
An increase of 10.0%10.0\%10.0%
An increase of 21.3%21.3\%21.3%