Question

Can I Plss get some help on this

Answer 1

The reason the government monitors the size of the money supply is so that they can maintain stability and limit inflation.

Why should money supply be monitored?

Money supply impacts the level of inflation in a country and therefore the stability of the nation as inflation is tied to economic stability.

The government would therefore try to maintain a level of money supply that leads to an inflation rate that is not too high or low, but will contribute to economic growth.

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