Most economists would argue that a significant increase in the supply of money will

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Most economists would argue that a significant increase in the supply of money would lead to inflation, as there would be more money chasing the same amount of goods and services. This inflation can erode the value of people's savings and create uncertainty in the market. Therefore, controlling the money supply is an important tool for central banks to manage inflation and stabilize the economy. Option A is incorrect because an increase in the supply of money could actually encourage technological change, as it may be easier and cheaper for firms to invest in new technology. Option B is incorrect because while an increase in the money supply may temporarily reduce the price level, in the long run, it is likely to lead to inflation. Option D is incorrect because there is no clear relationship between the supply of money and the performance of different sectors of the economy.

Most Economists Would Argue That a Significant Increase in the Supply