An increase in money growth leads, ultimately, to:

Name: An increase in money growth leads, ultimately, to:
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An increase in money growth leads to both an increase in the inflation rate and a decline in real money balances (as the purchasing power of money decreases). As a result, the central bank tends to increase the nominal interest rate to offset the impact of rising inflation, which also affects other interest rates in the economy. Therefore, all of the given options are correct.

An Increase in Money Growth Leads, Ultimately, To