An increase in the money supply that leads to an increase in expected inflation,which in turn leads to an increase in the interest rate,is best described as the

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This scenario is best described as the expectations effect. An increase in the money supply leads to an expectation of inflation, which causes people to demand a higher return on their investments to compensate for the loss in purchasing power. This, in turn, leads to an increase in the interest rate.

An Increase in the Money Supply That Leads to an Increase