According to the quantity theory of money, an increase in the money supply will result in

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The quantity theory of money posits that an increase in the money supply will lead to a proportional increase in nominal GDP, assuming velocity and real output remain constant. This is because an increase in the money supply means there is more money circulating in the economy, which leads to an increase in overall spending and therefore nominal GDP.

According to the Quantity Theory of Money, an Increase in the Money