QUESTION $26$

Which of the following is true concerning the monetary dynamics of inflation?

A$.$ Increased supply of nominal cash$-$balances is the same decreased demand for real cash$-$balances before the price level adjusts.

B$.$ Increased supply of nominal cash$-$balances is the same as increased demand for real cash$-$balances before the price level adjusts.

C$.$ Increased supply of nominal cash$-$balances is the same as decreased real cash$-$balances before the price level adjusts.

D$.$ Increased supply of nominal cash$-$balances is the same as increased real cash$-$balances before the price level adjusts.

E$.$ None of the above is true.