-In the long run,an increase in the quantity of money ________ the value of money and ________ the price level.
A)lowers;lowers
B)raises;raises
C)lowers;raises
D)raises;does not change
E)lowers;does not change

Question

-In the long run,an increase in the quantity of money ________ the value of money and ________ the price level.
A)lowers;lowers 
B)raises;raises 
C)lowers;raises 
D)raises;does not change 
E)lowers;does not change

Quizplus · Accepted Answer

In the long run, an increase in the quantity of money lowers the value of money because more money is chasing the same amount of goods and services, leading to inflation. This inflation raises the overall price level.

-In the Long Run,an Increase in the Quantity of Money