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If there is not enough money in the circulation what happens to businesses?
Wiki User
∙ 12y ago
It is called an inflation or recession.
Wiki User
∙ 12y ago
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What happens to the circulation of money during inflation?
prices go up
Why did the farmers want more money in circulation?
Because they weren't earning enough money by just farming. They were going into debt. So, they were constantly going to the bank to get loans, with the bank not bringing enough money in. Pretty soon... even the bank was going into debt, and nobody had enough money to support their families. This was known as the Panic of 1893
What problem does tight money policy combat?
tight money policy combats inflation (when to much money is out in circulation the Fed limits the amount of money that is in Circulation known as the tight money policy.)
What is it called when banks lend money to businesses?
Workers and Businesses
What do you mean by currency in circulation?
Currency in circulation is reffering to the money being used currently. The money you give to and get from anywhere is "circulated" currency
What happens to the money supply when a loan is repaid?
it maintains steady circulation of money in the economy
What happens to the circulation of money during inflation?
prices go up
What happens when you invest in a mutual fund?
your money gets loaned out to businesses and companies.
What happens when you invest a mutual fund?
your money gets loaned out to businesses and companies.
How does Unemployment affect money circulation in countries?
More money is in circulation
What is credit creation?
Credit creation, in economics, is the situation wherein banks make more loans to consumers and businesses. It results to an increase in the amount of money in circulation.
Why did the farmers want more money in circulation?
Because they weren't earning enough money by just farming. They were going into debt. So, they were constantly going to the bank to get loans, with the bank not bringing enough money in. Pretty soon... even the bank was going into debt, and nobody had enough money to support their families. This was known as the Panic of 1893
How effective is newspaper ads?
Effective enough that businesses keep placing them, which they wouldn't do if they felt they weren't getting their money's worth from them.
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 to retierd hockey players?
Im not sure but i think that by then they have enough money to retire.
What happens if you don't have enough money to cross the gw bridge?
I would borrow some money, or you can't go over.
What happens when banks are too lenient in loaning money to consumers and businesses?
It causes a boom in spending and production that may not be paid back.
