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If there is a increase in money supply that is causing price to rise money only does one thing. The money that is taking is used for supply.

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Rhoda Torphy

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2y ago
This answer is:
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Nostalgic

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2y ago
It looses purchasing power.

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Q: If there an increase in the money supply that causes prices to rise and leads to inflation what happens to money?
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Related questions

If there is an increase in the money supply that causes money to lose its purchasing power and leads to inflation what happens to prices?

they rise


What happens when too much money is in circulation?

Inflation happens. When the supply of money goes up. The value of money goes down. And prices go up. Inflation is not the same as rising prices. Inflation causes rising prices.


What happens when the demand is more than supply?

Prices increase and you have inflation.


If there is an increase in the money supply that causes prices to rise and leads to inflation what happens to the money?

If there is a increase in money supply that is causing price to rise money only does one thing. The money that is taking is used for supply.


What if there is an increase in the money supply that causes prices to rise and leads to inflation what happens to money?

If there is a increase in money supply that is causing price to rise money only does one thing. The money that is taking is used for supply.


If there is an increase in the money supply that causes prices to rise and leads to inflation what happens to money?

If there is a increase in money supply that is causing price to rise money only does one thing. The money that is taking is used for supply.


What happens when there is an increase in prices for goods and services combined with a reduction in the value of money?

When there is an increase in prices for good and services combined with a reduction in the value of money it is known as inflation.


What happens when there is an increase in prices for good and service combined with a reduction in the value of money?

When there is an increase in prices for good and services combined with a reduction in the value of money it is known as inflation.


inflation?

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What refers to the persistent increase in the prices of goods and services?

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If there is an increase in the money supply that cause money to lose it purchasing power and leads to inflation what happens to prices?

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Inflation refers to the general increase in prices of goods and services over time, leading to a decrease in the purchasing power of a currency.