Economy, asked by Rahulsanthosh7888, 1 year ago

How does increase in money supply lead to inflation in the economy?

Answers

Answered by harman511336
0

Answer:

to be honest, but the page you requested cannot accept incoming message

Answered by chotu6959
2

Answer:

increasing the money supply faster than the growth in real output will cause inplation .The reason is that there is more money chasing the same number of goods . Therefore the increase in monetary demand causes firms to put up prices


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