If there is lack of money supply in comparison to the supply of the goods and services, then the possible consequence would be
Answers
Answer:
An increase in the money supply will lead to in increase in the amount of money that people and firms will hold and they will spend more. Therefore aggregate demand will increase. The reverse will be true when money supply decreases. That is a decrease in the money supply will lead to a decrease in the amount of money that people and firms will hold and as a result they will spend less. This will cause aggregate demand to decrease.
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Answer: weak.
Explanation: The lack of money supply in comparison to the supply of the goods and services, the possible consequence would be weak, because
Capital is the source of any goods or services, for example, we have land labor capital and entrepreneurs the capital is the master of all because without capital there will be a weakness for the success of such business that lacks capital.