An increase in money supply leads to which of the following in the long run?
A) economic growth
B) economic development
C) decreased income inequality
D) an increased rate of inflation

Question

Quizplus · Accepted Answer

In the long run, an increase in the money supply typically leads to higher inflation as more money chases the same amount of goods and services, assuming other factors remain constant.

An Increase in Money Supply Leads to Which of the Following