Asked by Nurul Ainaa on Jul 24, 2024
Verified
If the quantity of money supplied is greater than the quantity demanded, then prices should fall.
Quantity of Money
The total amount of money available in an economy, including currency and balances held in checking and savings accounts.
Prices Fall
A situation where the amount of money required to purchase goods or services decreases, typically due to reduced demand or increased supply.
- Learn about the consequences of shifts in the money supply and demand on the price level.
Verified Answer
AW
andrew WoodallJul 29, 2024
Final Answer :
False
Explanation :
When the quantity of money supplied exceeds the quantity demanded, it typically leads to inflation, causing prices to rise, not fall, because there is more money chasing the same amount of goods and services.
Learning Objectives
- Learn about the consequences of shifts in the money supply and demand on the price level.