If monetary authorities persistently expand the money supply at a rapid rate, the probable result will be:

Question

Quizplus · Accepted Answer

When monetary authorities persistently expand the money supply at a rapid rate, it increases the aggregate demand and causes a higher level of prices. This leads to inflation, which is the general rise in the level of prices of goods and services over time. Thus, the most probable result of persistent expansion of money supply at a rapid rate is inflation.

If Monetary Authorities Persistently Expand the Money Supply at a Rapid