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"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.
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∙ 11y 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 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.
What does too much money in the economy mean?
it's called hyper inflation
Did slavery affect the economy in the north?
just a little because some northerners had slaves too
What are the pros and cons of raising federal taxes?
Maintaining the right amount of taxation is a very tricky thing to do in order to keep the economy stable. This is because if the taxes are too high, the government is well funded, but its people don't have much money to spend to increase business, and thus less money is taken from each individual and business. On the other hand, if you tax too little, the government gets very little money from all the business that's going on in the country. The lower the taxes, the more industry that usually goes on, but also, less funding for government agencies and programs. Thus too little, no money, too much, no money. It is thus a very difficult balancing act.
What will happen when too little money is circulated?
A recession happens .
The idea that too much money in the economy causes inflation?
quantity theory: Theory that too much money in the economy causes inflation.
What happens when there is too much or too little water?
if there too little water animal die crops are not growing and if their is too much water flood came
What happens if you too little protein?
You die
What happens when you have too little or too much Glutamate?
it can have effects on your memory
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.
What happens when you get too little cholesterol?
Too little cholesterol level IS dangerous in its effect on hormone secretions.
What happens when margin requirements are too liberal?
Margin requirements that are too liberal can damage the stock market and the economy.
What does too much money in the economy mean?
it's called hyper inflation
What happens if a person have too much or too little amount of neurotransmitters?
Stuff.
What happens to the body if you have too little or too much of Vitamin C?
you eat cake
What happens if you take in too little sodium?
become dyhydrated
