According to the equation of exchange, an increase in money supply in an economy, other things equal, would

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According to the equation of exchange, MV=PQ, where M is the money supply, V is velocity, P is the price level, and Q is real output. Assuming velocity and real output remain constant, an increase in the money supply (M) would lead to an increase in nominal GDP (PQ), as there are more dollars available to purchase goods and services.

According to the Equation of Exchange, an Increase in Money