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kiruha [24]
2 years ago
8

How do changes in the money supply affect people and businesses

Social Studies
1 answer:
Mademuasel [1]2 years ago
8 0

Answer:

An increase in the supply of money works both through lowering interest rates, which spurs investment, and through putting more money in the hands of consumers, making them feel wealthier, and thus stimulating spending. Business firms respond to increased sales by ordering more raw materials and increasing production.

Explanation:

Money supply and interest rates have an inverse relationship. A larger money supply lowers market interest rates, making it less expensive for consumers to borrow. Conversely, smaller money supplies tend to raise market interest rates, making it pricier for consumers to take out a loan.

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3 years ago
Which term refers to the belief that the untied states had a duty to spread democracy across the continent
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Somebody pls help with 4 and 5
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In what region of europe did absolute monarchy help most directly with economic modernization?
kirill115 [55]

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1 year ago
Question 1:<br> What was the Dark Age? Explain why<br> was it called as such.
notka56 [123]

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