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it's called hyper inflation

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Q: What does too much money in the economy mean?
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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 lead to?

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.


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.

Related questions

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 lead to?

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.


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.


What does the name mosko mean?

a kid with too much money


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.


When was Too Much Money created?

Too Much Money was created in 2009.


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.


What do you think is the cause of inflation?

Inflation has two basic causes. They usually go hand in hand but they will be explained separately. 1. Too much money in the economy (I know this sounds funny, bear with me). This is the supply side of inflation (so too much supply, the price goes down). Having too much money in the economy causes money to be "cheap", so the value of the dollar falls. This can happen from having interest rates be too low, the government printing too much money, etc etc. 2. Too much demand for goods (could theoretically be taken as a decrease in demand for the dollar, but that is a little more theoretical). This causes the price of goods to rise. This means that a dollar will purchase less goods, making the dollar worth less.