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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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What are the basis of an increase or decrease in supply?

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


Why does an increase in money supply lead to a decrease in interest rates?

An increase in the money supply leads to a decrease in interest rates because when there is more money available in the economy, lenders have more funds to lend out. This increased supply of money makes borrowing cheaper, causing interest rates to go down as lenders compete to attract borrowers.


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

If the demand for a commodity increases, but the supply does not increase equally, the price will increase. If the supply of a commodity increases, but the demand for that commodity does not increase equally, the price will decrease. If the demand for a commodity decreases, but the supply does not decrease equally, the price will decrease. If the supply of a commodity decreases, but the demand does not decrease equally, the price will increase.


If A decrease in price of a product will result in?

increase in demand and decrease in supply.


State what the law of supply and demand shows and describe how it works?

If the demand for a commodity increases, but the supply does not increase equally, the price will decreaase. If the supply of a commodity increases, but the demand for that commodity does not increase equally, the price will increase. If the demand for a commodity decreases, but the supply does not decrease equally, the price will increase. If the supply of a commodity decreases, but the demand does not decrease equally, the price will decrease

Related Questions

What are the basis of an increase or decrease in supply?

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


Why does an increase in money supply lead to a decrease in interest rates?

An increase in the money supply leads to a decrease in interest rates because when there is more money available in the economy, lenders have more funds to lend out. This increased supply of money makes borrowing cheaper, causing interest rates to go down as lenders compete to attract borrowers.


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

If the demand for a commodity increases, but the supply does not increase equally, the price will increase. If the supply of a commodity increases, but the demand for that commodity does not increase equally, the price will decrease. If the demand for a commodity decreases, but the supply does not decrease equally, the price will decrease. If the supply of a commodity decreases, but the demand does not decrease equally, the price will increase.


How does the law of supply and demand increase and decrease in supply?

ty


If A decrease in price of a product will result in?

increase in demand and decrease in supply.


State what the law of supply and demand shows and describe how it works?

If the demand for a commodity increases, but the supply does not increase equally, the price will decreaase. If the supply of a commodity increases, but the demand for that commodity does not increase equally, the price will increase. If the demand for a commodity decreases, but the supply does not decrease equally, the price will increase. If the supply of a commodity decreases, but the demand does not decrease equally, the price will decrease


If a company raises its price for holidays over the equilibrium price the demand will decrease the supply?

decrease and the supply will increase.


How does supplies affect the price of a product?

A higher price will cause an increase in supply, assuming that all other factors remain constant. Likewise, a decrease in price will cause a decrease of supply and an increase in demand.


An increase in supply will cause?

An increase in supply will cause a decrease in demand. The value of what is being supplied would also drop.


What is a fiscal policy designed to do?

Increase or decrease the money supply


What happens to the supply curve when there is a decrease in production?

Then the price will increase.


An increase in the money supply is likely to decrease?

the prime rate