Suppose the Bank of Canada decreased the growth rate of the money supply. What would permanently decrease?

Question

Quizplus · Accepted Answer

A decrease in the growth rate of the money supply would decrease the inflation rate permanently, as there is less money to be spent and therefore less upward pressure on prices. It would not necessarily affect the growth rate of GDP or the unemployment rate permanently, and it may also cause a temporary decrease in the price level due to reduced demand.

Suppose the Bank of Canada Decreased the Growth Rate of the Money