The total money supply in the economy rises from $12M to $17M (in millions of dollars). The velocity of money transactions is 2.4. The price level is 1.9. With more money in the economy, people spend money 3.6% faster than before. To maintain the economy at a stable state and maintain the same level of output (Y), a central planner must (round all results to two decimals)
a) Increase the price level to 2.26
b) Increase the price level by 46.84%
c) Decrease the price level by 41.67%
d) Decrease the price level to 1.84