An increase in the money supply will

Name: An increase in the money supply will
Brand: Quizplus
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Question

Quizplus · Accepted Answer

An increase in the money supply will increase the amount of money available for spending, which will lead to an increase in aggregate demand. This is because people will have more money to spend, which will lead to an increase in demand for goods and services. This increase in demand may lead to an increase in prices in the short run, but in the long run, prices will adjust, and output will return to its natural level.

An Increase in the Money Supply Will