In the basic overlapping generations model suppose money supply is expanding at rate z. However, the new fiat money is not introduced as lump-sum payments to the old, but through proportional money payments to existing money holders. Then,

(a) the expanding money supply distorts the economy. (b) money is superneutral. (c) welfare is lower than in the Golden Rule allocation. (d) there is no difference relative to the case of lump-sum payments to the old.