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slava [35]
3 years ago
11

5. The money supply is the total amount of money available in the economy. How do changes in the money supply affect people and

businesses?
History
1 answer:
aivan3 [116]3 years ago
6 0
Referring to what the previous person said^^Actually the point of this app is to help people answer questions and to ask questions ._.

Anywhooo... if the money supply in the economy goes up, then sometimes businesses would lower prices. But some businesses that make a steady income from their money supply, usually don’t lower prices even if the supply is up because they like to keep a steady profit.
If money in the economy decreases, the prices go up so that businesses can make more profit to up their money supply. So that they can stay in business by making enough profit to up their money supply.

-HOPE THAT HELPED!!! <3
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