Effects of Increasing the Money Supply
According to the quantity theory of money, an increase in the money supply will lead to which of the following?
A
An increase in the nation's long-run production possibilities
B
Lower economic output in the short run and inflation in the long run
C
Higher economic output in the short run and deflation in the long run
D
Higher economic output in the short run and inflation in the long run
E
Higher unemployment and deflation in the long run
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