According to the Friedman-Lucas money surprise model,a surprise change in the money supply will imply a

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According to the Friedman-Lucas money surprise model, a surprise change in the money supply will lead to an unexpected change in the inflation rate. This is because the model assumes that individuals and firms are rational and adjust their expectations based on new information, including changes in the money supply. As a result, a surprise increase in the money supply will lead to higher inflation expectations and a corresponding increase in the actual inflation rate.

According to the Friedman-Lucas Money Surprise Model,a Surprise Change in the Money