Excessive growth in money supply leads tohigh inflationGroup of answer choicesno effect to the economyhigh inflationno inflationlow inflationNext

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Excessive growth in money supply leads tohigh inflationGroup of answer choicesno effect to the economyhigh inflationno inflationlow inflationNext
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Solution 1

Excessive growth in money supply leads to high inflation.

Here's why:

  1. Money Supply Increase: When there is an excessive growth in the money supply, it means there is more money circulating in the economy than there are goods and services available.

  2. Demand Increases: With more money in the Knowee AI StudyGPT is a powerful AI-powered study tool designed to help you to solve study prob

Knowee AI StudyGPT is a powerful AI-powered study tool designed to help you to solve study problem.
Knowee AI StudyGPT is a powerful AI-powered study tool designed to help you to solve study problem.
Knowee AI StudyGPT is a powerful AI-powered study tool designed to help you to solve study problem.
Knowee AI StudyGPT is a powerful AI-powered study tool designed to help you to solv

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