If the money supply growth is set at a slower pace than the growth of real GDP, then inﬂation will
occur.

Name: If the money supply growth is set at a slower pace than the growth of real GDP, then inﬂation will occur.
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If the money supply growth is set at a slower pace than the growth of real GDP, then the economy could experience deflation, rather than inflation. The decrease in the money supply could lead to a decrease in demand and prices, resulting in deflation.

If the Money Supply Growth Is Set at a Slower