10. In the long run, increasing the money supply A. increases real GDP. B. decreases unemployment. C. increases real consumption. D. increases inflation.

## Step 1<br />The problem is about the long-term effects of increasing the money supply. The money supply refers to the total amount of money available in an economy at a particular time.<br /><br />## Step 2<br />The options A, B, and C suggest that increasing the money supply can lead to an increase in real GDP, a decrease in unemployment, and an increase in real consumption. However, these are not the primary effects of increasing the money supply in the long run.<br /><br />## Step 3<br />Option D suggests that increasing the money supply can lead to an increase in inflation. This is indeed the primary effect of increasing the money supply in the long run.<br /><br />## Step 4<br />When the money supply is increased, there is more money available for the same amount of goods and services. This can lead to an increase in the price level, which is the definition of inflation.