If the money supply grows faster than money demand, then the price level rises.

Name: If the money supply grows faster than money demand, then the price level rises.
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Question

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When the money supply grows faster than money demand, it leads to an excess supply of money. As a result, people have more money to spend, which leads to an increase in demand for goods and services. With the same amount of goods and services available, the increase in demand leads to an increase in prices, i.e. inflation.

If the Money Supply Grows Faster Than Money Demand, Then