A sharp increase in the growth of the money supply is likely followed by

Question

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A sharp increase in the growth of the money supply leads to an increase in inflation as people can afford to buy more goods and services, causing demand to rise and prices to increase. This can result in a decrease in the purchasing power of money, and can ultimately lead to higher interest rates and a decrease in the value of currency, negatively impacting the economy.

A Sharp Increase in the Growth of the Money Supply