In the long run, a sustained increase in money supply growth relative to the growth rate of potential real output will most likely:

Question

Quizplus · Accepted Answer

In the long run, a sustained increase in money supply growth relative to potential real output growth typically leads to higher inflation without affecting real variables like real interest rates, unemployment, or real output growth, according to the classical dichotomy and the neutrality of money.

In the Long Run, a Sustained Increase in Money Supply