According to the quantity theory of money, a ten percent increase in the nominal money supply will lead to

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According to the quantity theory of money, the price level is directly proportional to the quantity of money, given that the velocity of money (the rate at which money circulates in the economy) and the level of real output remain constant. Therefore, a ten percent increase in the nominal money supply will lead to a ten percent increase in the price level.

According to the Quantity Theory of Money, a Ten Percent