Question

do you agree that the excess of money supply hinders the process of economic growth​

Answer 1

Answer:

yes

Explanation:

because it decreases the value of currency and further breeds poor economy

Answer 2

Answer:

Excess of money supply will lead to an increase in general price level prevailing in the economy (or inflation) because the production of goods and services will remain the same. This increase in general price level will lead to an increase in interest rates on investment expenditures resulting in a fall in investment activities in the economy. Hence, economic growth will be adversely affected by such inflationary pressures.