Question

The money supply is the total amount of money available in the economy. How do changes in the money supply affect people and businesses?
@Brainybeauty @austinL

Answer 1

We AREN'T HELPING YOU ANYMORE!

Answer 2

I am going to ask you nicely, Please do not start with me.
I am trying to get help. And that is it. If you don't wanna help please get out my question.

Answer 3

If the Government reduces the supply of money, banks and money lenders will find they have less money to lend to people and firms. This shortage of the supply of money will lead them to charge higher interest rate. Moreover, in order to obtain more money they will increase the interest rates to attract savers to put money in deposit accounts. All these actions will lead to lowering the aggregate demand and the prices will come down.
On the other hand, if the Government increases the supply of money to banks, they will lower the interest rates in order to encourage people and firms to borrow more. More individuals and firms will borrow thus boosting the aggregate demand and the output of the economy. But if the increase in supply is not calculated properly it can result in inflation.

Answer 4

YOU DROPPED OUT OF SCHOOL TO BE A LOSER AND NOW YOU ARE A NOBODY BECAUSE EVERYONE HATES YOU!

Answer 5

What? Are you bipola?

Answer 6

When money supply is less, the value of currency soars and price of goods is low. When money supply is high, the value of currency drops and there is inflation and the prices of goods soar.

Answer 7

NO. I HAVE NO IDEA WHAT THAT IS.

Answer 8

Thank you Brainy and Cj. :)

Answer 9

Jordan I said that because one minute you are saying sorry to me and all and the next your flipping out.

Answer 10

np ...nd yeah its useless arguing with psychopaths @Kayla_Is_Smart

Answer 11

I know what your saying lol

Answer 12

You get a fan for that!

Answer 13

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