Economy, asked by aneeq143, 11 months ago

what is the effect of increased money supply on inflation?​

Answers

Answered by Anonymous
1

Answer:

Explanation:

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.

Previous Question
Next Question
Similar questions
History, 5 months ago
. Write shorts notes on - Iron smelting furnaces in India ? . Write shorts notes on - Iron smelting furnaces in India ?
English, 5 months ago
6 Faith in someone beyond a proper limit becomes blind faith. 1. He is so noble that he cannot harbour ill-feelings, 8 The water was so polluted that it could not be drunk.​
Science, 5 months ago
ਨਵਰੋਜ਼ ਨੇ ਇੱਕ ਕੇਕ ਦਾ 3/9 ਭਾਗ ਖਾਦਾ, ਜਦਕਿ ਰਾਜਵਿੰਦਰ ਨੇ ਕੇਕ ਦਾ 1/2 ਭਾਗ ਖਾਦਾ। ਤੁਲਨਾ ਕਰੋ।​...
Math, 11 months ago
State in which quadrant or on which axis do the following points lie. • A(-3,2), B(-5, -2), K(3.5, 1.5), D(2, 10), • E(37, 35), F(15,-18), • G(3,-7), H(0,-5), • M(12,0), N(0,9), • P(0, 2.5), • Q(-7, -3)​...
English, 11 months ago
state whether the following statements are true or flase correct the flase statements by finding evidence from the poem to support your remark ​...
Math, 1 year ago
Which equation represents the function graphed on the coordinate plane?g(x) = |x + 1| + 3 g(x) = |x + 3| – 1 g(x) = |x – 1| + 3 g(x) = |x + 3| + 1...
English, 1 year ago
sebab adat pertabalan diraja perlu dipertahankan...
English, 1 year ago
Can you please send speech/debate on the topic "eradicate corruption build a new India"...