Inflation and Money Growth (a) Are there any costs associated with inflation? Are there any benefits from inflation? (b) Discuss the findings in the literature about the relationship between (i) money growth and inflation and (ii) money growth and output growth. (c) Explain the reasons why inflation can change in the long run. Base your discussion on the simple Money Market Model outlined in the lectures. (d) Show the effect of a permanent increase in the growth rate of money. Use the Money Market Model (in the long run) for this purpose. What are the key messages from this experiment?