If the monetary authorities persistently expand the money supply at a rapid rate, the probable result will be

Name: If the monetary authorities persistently expand the money supply at a rapid rate, the probable result will be
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Question

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Persistently expanding the money supply at a rapid rate typically leads to inflation (A) and can also result in high nominal interest rates (B) as lenders demand higher rates to compensate for the decreased purchasing power of money.

If the Monetary Authorities Persistently Expand the Money Supply at a Rapid