If the nominal money supply rises from 400 billion to 420 bi

If the nominal money supply rises from $400 billion to $420 billion and the price level rises from an index value of 100 to 102, the real money supply rises.

Solution

Initial real money supply = $400 billion / 100 = $4 billion

New Real money supply = $420 billion / 102 = $4.116 billion

It rises.