In an episode of DuckTales (a Disney cartoon starring Scrooge McDuck) entitled "Dough Ray Me," one of the characters invented a duplicating machine. Other characters used the machine to start duplicating money at a phenomenal rate. What would you expect to happen? (And indeed, the episode does show this happening.)

Question

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When money is duplicated at a phenomenal rate, it will lead to an increase in the supply of money, which will dilute the value of every dollar already in the market. As a result, the value of each dollar will decrease, causing an increase in the general price level of goods and services, leading to massive inflation.

In an Episode of DuckTales (A Disney Cartoon Starring Scrooge