The short-run effect of an increase in the money supply is to

Name: The short-run effect of an increase in the money supply is to
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An increase in the money supply will lead to an increase in spending, which in turn will lead to an increase in both real GDP and the price level in the short run. This is due to the fact that an increase in the money supply makes more money available for spending, which increases the demand for goods and services, leading to an increase in production and the price level.

The Short-Run Effect of an Increase in the Money Supply