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What decades was there both high inflation and rapid money supply growth in the US?
Wiki User
∙ 11y ago
1970s
Wiki User
∙ 11y ago
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What money supply growth exceeds the growth of the overall economy what is the result?
Inflation
If money supply growth exceeds the growth of the overall economy what will be the result?
inflation
If the money supply growth exceeds the growth of the overall economy what is the result?
Inflation
According to the quantity theory of money persistent inflation can only be caused by?
money supply growth that exceeds real GDP growth
If the required reserve ratio were 0 percent then money supply expansion would be infinite Why don't we want an infinite growth of the money supply?
P = MV/Q; so if V, velocity of money in final expenditures, and Q, the real value of final expenditures, remain relatively constant, then an infinite growth of money supply will lead to massive inflation.
What money supply growth exceeds the growth of the overall economy what is the result?
Inflation
If money supply growth exceeds the growth of the overall economy what will be the result?
inflation
What money supply growth exceeds the growth of the overall economy what will be the result?
inflation
If the money supply growth exceeds the growth overall economy what will be the results?
inflation
If the money supply growth exceeds the growth of the overall economy what is the result?
Inflation
What do monetarians believe regarding inflation?
the main cause of inflation is the growth of money supply
How does Brazil control inflation?
by controlling growth of money supply
According to the quantity theory of money persistent inflation can only be caused by?
money supply growth that exceeds real GDP growth
If the required reserve ratio were 0 percent then money supply expansion would be infinite Why don't we want an infinite growth of the money supply?
P = MV/Q; so if V, velocity of money in final expenditures, and Q, the real value of final expenditures, remain relatively constant, then an infinite growth of money supply will lead to massive inflation.
What organization most affect the money supply?
inflation
What is the relationship and proportioned powers that exists between the buyer and the supply?
The monetarist explanation of inflation operates through the Quantity Theory of Money, MV = PT where M is Money Supply, V is Velocity of Circulation, P is Price level and T is Transactions or Output. As monetarists assume that V and T are determined, by real variables, there is a direct relationship between the growth of the money supply and inflation. ChaCha again!
Increase in money supply followed by an increase in prices?
inflation
