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MaRussiya [10]
3 years ago
9

Write a paragraph that explains the correlation between money supply and economic growth.

English
1 answer:
bezimeni [28]3 years ago
8 0
Money supply and economic growth has a relationship where an optimum point exists. This means that there should not too much or too little money supply. When there is too much money supply, there will be a surplus of money which will result to inflation. Too little supply of money will result to a decrease in the demand. At the right amount, people will spend more money to buy items with the remaining being not too much that they can choose to buy more.
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alisha [4.7K]

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