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A high level of capital in the economy exerts and inflationary pressure. With this, prices can rise and the value of the money goes down.
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∙ 9y ago
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The idea that too much money in the economy causes inflation?
quantity theory: Theory that too much money in the economy causes inflation.
What does too much money in the economy mean?
it's called hyper inflation
Is running a taxi business a good idea in this economy?
No, running a new taxi business is not a good idea in this economy. There is too much competition out there, and it would cost too much money to start up, then what you would profit.
Why is it difficult for the Fed to get an accurate measure of the money supply?
The Federal Reserve, is the gatekeeper of the U.S. economy. There is too much money in circulation to get an accurate amount.
What happens when there is too little money in the economy?
"What do you mean by "too little" money? The lower the money supply is the higher nominal prices go." ^^^^^^.... are you retarded....^^^^^^^ The answer to this question is a recession. When there isn't enough money in the economy. There is a recession. Just like what we are in. As of now, there has not been enough money to pay employers, that is why people are being laid off. ^^^^ OP is referring to the supply of money. When there is too much money in the economy, Inflation can occur. Conversely when there is too little, deflation can occur. There is less dollar bills to go around: therefore they are worth a lot more, have more purchasing power, and since they are worth more you can get more for your dollar ie. prices of things drop. Real life economics, though, are more complex. Tons of other factors including overall economic stability, confidence of the people, etc. also affect what might happen if there is too little money in the economy.
The idea that too much money in the economy causes inflation?
quantity theory: Theory that too much money in the economy causes inflation.
What does too much money in the economy mean?
it's called hyper inflation
Why a country will not produce money in excess?
A country will not produce money in excess due to the negative consequences it can have on the economy. When there is too much money in circulation, it can lead to inflation, making prices of goods and services increase and reducing the purchasing power of individuals. Additionally, it can also lead to a loss of confidence in the currency and the overall stability of the economy.
Why the world's economy is down?
I am not really an economic expert but I believe that someone has too much money and doesn't want to spend it. That means there is a place with too much money and it makes the whole world lacking money.
Is running a taxi business a good idea in this economy?
No, running a new taxi business is not a good idea in this economy. There is too much competition out there, and it would cost too much money to start up, then what you would profit.
Why is it difficult for the Fed to get an accurate measure of the money supply?
The Federal Reserve, is the gatekeeper of the U.S. economy. There is too much money in circulation to get an accurate amount.
Is money a problem for people?
Yes money is a problem because it could lead to lack of food and significant things, losing money, and divorce. Be careful and be wise of what you do to buy things with money? It leads with too many arguments or robbery or even the economy.
When was Too Much Money created?
Too Much Money was created in 2009.
What happens if you consume too much lead?
Lead Poisoning
How can anybody make too much money?
There is no such thing as having too much money.
How many pages does Too Much Money have?
Too Much Money has 275 pages.
How much money is too much money?
Too much money depends on the reference point of the question.
