Question

When money supply in the
economy increases price will​

Answer 1

Answer:

increase

Explanation:

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this is the right answer

Answer 2

Answer:

Increase

If the Federal Reserve increases reserves, a single bank can make loans up to the amount of its excess reserves, creating an equal amount of deposits. The banking system, however, can create a multiple expansion of deposits. As each bank lends and creates a deposit, it loses reserves to other banks, which use them to increase their loans and thus create new deposits, until all excess reserves are used up.

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