Economy, asked by krishnamya15, 5 months ago

How does printing more money cause inflation?​

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Answered by Anonymous
3

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How does printing more money cause inflation?

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  • Money becomes worthless if too muchis printed. If the Money Supply increases faster than real output then, ceteris paribus, inflation will occur. If you print more money, the amount of goods doesn't change.If there ismore money chasing the same amount of goods, firms will just put up prices.
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