Friedman and the NKs emphasize the short-runimpact of money on real variables. In the standard model of money demand,people want real balances, not nominal balances. Therefore, desired real balances do not depend on the price level,and desired nominal balances must be directly proportional to the price level.
Someone invents a new theft-resistantwallet.
This has no permanent effect on inflation though, since theproblem stipulates that everyone who benefits from the wallet gets one atonce. If use of the wallet graduallybecame popular, there could have been an extended inflationary effect. Otherwise, they assume it has noeffect. 2 out of every 3 people realizes that the level of Protection somehowaffects real output. The remaining estimates are centered at 6.