Answer:
The quantity of money will fall
Step-by-step explanation:
basic quantity equation of money's theory stressed that the general price of goods/services is attributed to the flow of money in circulation, I.e they have a linear relationship.The equation below gives the relationship between the quantity of money as well as price level. MV = PT
Where M = quantity of money
V =velocity of circulation
P = price level
According to the basic quantity equation of money, It should be noted that if price and output fall while velocity increases, then The quantity of money will fall.