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What is the Effectof a decrease in money supply?
Deflation
If there is a decrease in the money supply that causes money to gain purchasing power and leads to deflation?
It gains purchasing power.Apex
What does deflation have to do with the economy?
Deflation is the decrease is the decrease in prices of goods and services. This can affect the economy of a whole region, country, and in some cases, the world. Some of the causes can be: -Reduction in the supply of money or credit. -Reduction in the demand of goods. -Military waste. -Increases in debt and credit card repayment means. -Terrorism. -Government growth, who takes money away from the market economy to fund inefficient programs. -Regulations.
What do you understand by the concept of deflation and the cause of deflation?
an increase in which exceeds the supply
Effects of supply and demand?
supply and demand effects the market economy and commodity prices. with a increase in demand commodity price increases resulting in inflation in economy and viceversa, and with increase in supply by producers there is decrease in commodity price resulting in deflation in economy.
What is the Effectof a decrease in money supply?
Deflation
If there is a decrease in the money supply that causes prices to fall and leads to deflation what happens to money?
It gains purchasing power.
How did supply and demand affect farmers?
The farmers did not earn much.
If there is a decrease in the money supply that causes money to gain purchasing power and leads to deflation?
It gains purchasing power.Apex
What do you understand by the concept of deflation and the cause of deflation?
an increase in which exceeds the supply
What does deflation have to do with the economy?
Deflation is the decrease is the decrease in prices of goods and services. This can affect the economy of a whole region, country, and in some cases, the world. Some of the causes can be: -Reduction in the supply of money or credit. -Reduction in the demand of goods. -Military waste. -Increases in debt and credit card repayment means. -Terrorism. -Government growth, who takes money away from the market economy to fund inefficient programs. -Regulations.
How labor union demands affect supply?
If you mean supply of labour, labour unions restrict or decrease the supply of labour
Effects of supply and demand?
supply and demand effects the market economy and commodity prices. with a increase in demand commodity price increases resulting in inflation in economy and viceversa, and with increase in supply by producers there is decrease in commodity price resulting in deflation in economy.
When the federal reserve reduces the money supply what happens to the GDP and price level?
The reduction in the money supply increases the price level, causes deflation, and may increase or decrease the GDP depending on the level of rational expectations.
Where can deflation occur?
if you are talking about price deflation it can occur any where. In places that use fiat currency it is somewhat unlikely because initiating a deflation causes a recession and because the people controlling the money have to sacrifice purchase in order to take money out of circulation. In places that use commodity currency it can happen if their is a decline in the production of the commodity or an increase in demand. If you are talking about wind deflation this is most likely to happen when their is an non smooth surface such as a hill or mountain.
Which of these is deflation?
the decline of prices due to insufficient money supply A+
What factors that influence money supply?
inflation ,deflation, interest rate
