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If money supply grows slowly, it can throttle economic growth, there isn't enough money to go around in support of economic needs.
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∙ 11y ago
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What is quality theory of money?
by quality of money we mean other thing remaining same when the supply of money does not effects the price level
The money multiplier formula shows the effects of?
The money multiplier formula shows the effects of the Federal Reserve discount rate. It does not show a money supply or low interest rates on creditors over a period of time.
What would the effects be if the Feds sold Treasury bonds on the open market?
If bonds are sold then the supply of money decreases.
How does raising the discount rate affect the money supply?
Decreases the money supply
What factors determine money supply?
factors which determine money supply is: open market operations, variable money supply bank rate policy.
What are the effects if money supply grows too rapidly?
When money supplies grow too rapidly, and product supply doesn't keep up with them, the value of money falls.
What is quality theory of money?
by quality of money we mean other thing remaining same when the supply of money does not effects the price level
The money multiplier formula shows the effects of?
The money multiplier formula shows the effects of the Federal Reserve discount rate. It does not show a money supply or low interest rates on creditors over a period of time.
What most likely effects the Fed lowering the discount rate on overnight loans?
An increase in the money supply
What would the effects be if the Feds sold Treasury bonds on the open market?
If bonds are sold then the supply of money decreases.
How does raising the discount rate affect the money supply?
Decreases the money supply
Do you have supply of money in India ppt?
there are four measure of money supply in india,
What factors determine money supply?
factors which determine money supply is: open market operations, variable money supply bank rate policy.
What grows as you age?
Hopefully, your money!
What effect does an increase in the money supply have on inflation?
An increase in the money supply shifts the money supply curve to the right. If you look on your graph, you will see that an increase in money supply will cause the interest rate to decrease. Here's why: Fed increases money supply-->excess supply of money at the current interest rate -->people buy bonds to get rid of their excess money-->increase in the prices of bonds --> decrease in the interest rate.
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 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.
