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Sliva [168]
3 years ago
10

What happens to the money supply during inflation? *

Business
1 answer:
Vikki [24]3 years ago
6 0
The link between Money Supply and Inflation. ... Increasing the money supply faster than the growth in real output will cause inflation. The reason is that there is more money chasing the same number of goods. Therefore, the increase in monetary demand causes firms to put up prices.
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