Question

How does one determine if there is too much money in circulation

Answer 1

Answer:

The same principle is true for money. If there is too much money in circulation — both cash and credit — then the value of each individual dollar decreases. This explanation of inflation is called the demand-pull theory, and is classically defined as "too much money chasing too few goods."

I hope it help you..

Answer 2

Answer:

The same principle is true for money. If there is too much money in circulation — both cash and credit — then the value of each individual dollar decreases. This explanation of inflation is called the demand-pull theory, and is classically defined as "too much money chasing too few goods."