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inflation

It depends on the definition of money you are using.

If your definition includes "bank credit", the supply clearly falls.

If you are using M0 money defition, is does not matter (if the question involves the IS-LM graph, use this answer)

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Q: Will money supply increase decrease or stay the same if banks cannot find borrowers?
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What are the basis of an increase or decrease in supply?

demand in supply is the basis of it's increase and decrease


How is the law of supply similar to the law of demand?

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