Question

12. What does an increase or more money in the economy allow people and business to do?

Answer 1

Explanation:

What happens when money supply increases?

The increase in the money supply will lead to an increase in consumer spending. This increase will shift the AD curve to the right. Increased money supply causes reduction in interest rates and further spending and therefore an increase in AD.money is a means of payment for goods and services. It serves as a medium of exchange.

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