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The money supply should never grow beyond the potential demand. Growing beyond has a tendency to cause inflation and other economic pressures.
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∙ 9y ago
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A large money supply is called?
A financial surplus perhaps.
Would having a money supply twice as large as it is currently makes trade twice as easy?
An decrease in the required reserve ratio leads to an increase in the money supply
If the fed wants to increase the money supply it should?
If the Fed wants to increase the money supply, they should buy the government bonds. The actions that can be used by the Fed to increase the money supplied is called the monetary policy.
A price floor will cause a large surplus when demand is and supply is?
A price floor will cause a large surplus when the demand is low and the supply is high. The floor is the lowest point at which something can be sold without losing money.
How does raising the discount rate affect the money supply?
Decreases the money supply
A large money supply is called?
A financial surplus perhaps.
Would having a money supply twice as large as it currently is make trade twice as easy?
An decrease in the required reserve ratio leads to an increase in the money supply
Would having a money supply twice as large as it is currently makes trade twice as easy?
An decrease in the required reserve ratio leads to an increase in the money supply
If the fed wants to increase the money supply it should?
If the Fed wants to increase the money supply, they should buy the government bonds. The actions that can be used by the Fed to increase the money supplied is called the monetary policy.
Where can you find a 100 bill?
Any bank should have a large supply
A price floor will cause a large surplus when demand is and supply is?
A price floor will cause a large surplus when the demand is low and the supply is high. The floor is the lowest point at which something can be sold without losing money.
What yearly inflation rate do monetarists argue ensures an adequate money supply for a healthy economy?
An inflation rate of from 1-3% should ensure an adequate money supply for a healthy economy.
What is the average medical supply budget?
You should always keep a good amount of money for your medical supply. It depends on the size and quality of your medical services.
How does raising the discount rate affect the money supply?
Decreases the money supply
Do you have supply of money in India ppt?
there are four measure of money supply in india,
What factors determine money supply?
factors which determine money supply is: open market operations, variable money supply bank rate policy.
What effect does an increase in the money supply have on inflation?
An increase in the money supply shifts the money supply curve to the right. If you look on your graph, you will see that an increase in money supply will cause the interest rate to decrease. Here's why: Fed increases money supply-->excess supply of money at the current interest rate -->people buy bonds to get rid of their excess money-->increase in the prices of bonds --> decrease in the interest rate.
