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for money to be in the Market, there must be money equilibrium. i.e quantity of money supplied must be equal to quantity of money demanded. in a situation whereby quantity of money supply increases, without a corresponding increase in quantity demanded, there will be inflation in the Economy. inflation can occure in two different perspectives; either by increase in the general price level or increase in money supply without a corresponding increase in money demand.
What else can I help you with?
When does the quantity of money available increase?
when government "prints" it, or when banks loan it.
If a quantity increases as a second quantity increases and decreases as the second quantity decreases the two quantities are said to be?
ballai
What happens to interest rates when the money supply increases?
When the money supply increases, interest rates typically decrease. This is because there is more money available for borrowing, which reduces the cost of borrowing money.
How does the quantity supplied change as the price increases?
As the price increases, the quantity supplied also increases. This is known as the law of supply, which states that there is a direct relationship between price and quantity supplied.
What is the situation in which the amount of available money increases faster than the amount of available goods is known as?
supply and demand
How quantity of money is measured?
In an economy, the quantity of money is measured by the Money Supply. This is the amount of money available in an economy in a specific period of time.
When does the quantity of money available increase?
when government "prints" it, or when banks loan it.
If a quantity increases as a second quantity increases and decreases as the second quantity decreases the two quantities are said to be?
ballai
What happens to interest rates when the money supply increases?
When the money supply increases, interest rates typically decrease. This is because there is more money available for borrowing, which reduces the cost of borrowing money.
How does the quantity supplied change as the price increases?
As the price increases, the quantity supplied also increases. This is known as the law of supply, which states that there is a direct relationship between price and quantity supplied.
What is the situation in which the amount of available money increases faster than the amount of available goods is known as?
supply and demand
How do you find equilibrium quantity and price?
Quantity and price are proportional .as the price increases ,quantity is increases .as quantity is less and cheap then the market price fell down..example are cellphone ,electronics items etc.
What will happen to the equilibrium price and quantity of a normal good if the demand for the good increases and supply constant?
the equilibrium price rises and the quantity increases
What is the independent and dependent quantity of the amount of money spent at the movies increases with the number of tickets purchased?
The independent variable is the number of tickets purchased and the dependent variable is the amount of money spent.
What happens to the quantity demanded for credit if the cost of borrowing increases or decreases?
As the cost of credit increases, the quantity demand decreases. in contrast, if the cost of borrowing drops, the quantity of credit demand rises.
What is the Compatibility of a Cancer and a Cancer?
they increases their quantity
What happens if demand and supply increase?
the price and value of the item will decrease.
