Movements in the money supply are associated with

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Quizplus · Accepted Answer

Movements in the money supply are associated with changes in all three variables - interest rates, inflation, and output. An increase in money supply can lead to higher inflation, as there is more money chasing after the same amount of goods and services, leading to a depreciation of currency. This can also lead to changes in interest rates, as central banks may increase rates to combat inflation. Finally, changes in the money supply can also affect output and economic growth, as increased investment and consumption can spur economic activity.

Movements in the Money Supply Are Associated with