Under the monetary approach to the exchange rate theory, money supply growth at a constant rate
A.eventually results in ongoing price level deflation at the same rate,but changes in this long-run deflation rate do not affect the full-employment output level or the long-run relative prices of goods and services.
B.eventually results in ongoing price level inflation at the same rate,but changes in this long-run inflation rate do affect the full-employment output level and the long-run relative prices of goods and services.
C.eventually results in ongoing price level inflation at the same rate,but changes in this long-run inflation rate do not affect the full-employment output level or the long-run relative prices of goods and services.
D.eventually results in ongoing price level inflation at the same rate,but changes in this long-run inflation rate do not affect the full-employment output level, only the long-run relative prices of goods and services.
E.eventually results in ongoing price level deflation at the same rate,but changes in this long-run deflation rate do not affect the full-employment output level, only the long-run relative prices of goods and services.