In the long run the primary effect of increasing the quantity of money is higher prices.

Name: In the long run the primary effect of increasing the quantity of money is higher prices.
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Question

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Increasing the quantity of money in an economy, without a corresponding increase in the supply of goods and services, typically leads to inflation, which is reflected in higher prices. This is because more money chasing the same amount of goods and services tends to increase demand, pushing prices up.

In the Long Run the Primary Effect of Increasing the Quantity