answersLogoWhite

0


Best Answer

Contraction in the volume of available money or creditthat results in a general decline in prices. Deflation, is the answer.

User Avatar

Wiki User

14y ago
This answer is:
User Avatar

Add your answer:

Earn +20 pts
Q: Increasing the amount of money in circulation causes?
Write your answer...
Submit
Still have questions?
magnify glass
imp
Related questions

Would the free coinage of silver increase or decrease the amount of money in circulation?

The free coinage of silver would have to increase the amount of money in circulation.


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 the process called by which money enters into circulation?

MONEY CREATION" is a term used in economics. It is the means by which money is put into circulation. The amount of money in the economy is monitored by the central banks. -Gradpoint


Which government policy regulates the amount of money in circulation?

monetary police


In the theory of Monetarism what causes the price to increase?

larger quantity of money in circulation


Which term refers to an economic situation where the large amount of money in circulation creates continuous pressure to raise prices?

Inflation is when there is a large amount of money in circulation, thereby causing continuous pressure to raise prices.


The free coinage of silver would increase the amount of money in circulation?

increase


Public economic policy is most concerned with?

Controlling the amount of money in circulation


To alleviate the problem of depressed crop prices in the decades after the civil war farmers wanted the government to what?

Answer is issue more money into circulation


Is deflation of the money supply a good thing?

Deflation is a situation where the amount of the money supply is in a state of shrinking. It's a good thing if inflation is running high and out of control. In a normal economy, deflation means less money in circulation which causes the economy to suffer. Money is scarce and prices may be too high in relation to the money supply. This causes economic problems.


How does export affect the amount of money in circulation?

The more you export the more money you bring into the country and the more money will be used in the economy.


The amount of money in circulation?

There was approximately $1.07 trillion incirculation as of December 28, 2011