Excessive growth in money supply leads tohigh inflationGroup of answer choicesno effect to the economyhigh inflationno inflationlow inflationNext
Question
Solution 1
Excessive growth in money supply leads to high inflation.
Here's why:
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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.
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Demand Increases: With more money in the Knowee AI is a powerful AI-powered study tool designed to help you to solve study problem.
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Knowee AI is a powerful AI-powered study tool designed to help you to solve study problem.
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Similar Questions
Excessive growth in money supply leads tohigh inflationGroup of answer choicesno effect to the economyhigh inflationno inflationlow inflationNext
Demand inflation can be defined as too many dollars chasing too few goods.Group of answer choicesTrueFalse
Curb demand to drive inflation should beA.control of the money supplyB.reduce the wageC.abatement of taxD.Investment increases
Explain why a high rate of inflation can persist well after the economic conditions which caused it do no longer exist
Inflation is aAn average decrease in the price level bA change in relative prices of goods cAn increase in the average price level d
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