Assume the money supply is backed by the real gdp

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Let's assume the money supply is 'backed' by the real GDP, which it is.

If the money supply were to increase faster than the real GDP did, what would happen to prices, and why? What would happen if the money supply couldn't grow, as it couldn't, when we had a gold standard?

Why did we ever have a gold standard, anyway?

Reference no: EM13831304

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