When the government prints and circulates more currency in the economic system, it m (a) bring down the general price level.
(b) push up the general price level.
(c) increase the supply of goods in the economy.
(d) None of the above.
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Answer:
Option a is correct
Explanation:
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option (b) should be correct, as If the money supply increases, there would an increase in demand of goods amongst the people and therefore it will eventually lead to the rise in prices.
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