Question

how rapid growth in supply of currency does affect inflation?​

Answer 1

Answer:

Increasing the money supply faster than the growth in real output will cause inflation. 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.

Explanation:

Hope it will help you...

Answer 2

Answer:

Increasing the money supply faster than the growth in real output will cause inflation.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.