Increases in the money supply will cause demand for investment and consumption goods to _______ in the short run and cause prices to ________ in the long run.

Question

Quizplus · Accepted Answer

Increases in the money supply typically lead to increased demand for investment and consumption goods in the short run as more money is available for spending. In the long run, this increased demand can lead to higher prices due to inflationary pressures.

Increases in the Money Supply Will Cause Demand for Investment