English, asked by roshansm1139, 6 months ago

Do you agree with the view that the excess money supply hinders the process of economic growth? Give reasons

Answers

Answered by rk10053004

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.Hence, economic growth will be adversely affected by such inflationary pressures.

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