- In macroeconomics, money supply is the quantity of the money in circulation that an economy have in a point of time.
- Money supply can be defined as the quantity of the currency in circulation.
- Each country may use the definition that best make sense to them.
- It affects the inflation.
- If the money supply rises, inflation rises.
- If the money supply decreases, inflation decreases.
Why does inflation increase/decrease if the money supply increase/decrease?
Are there another definitions of the money supply besides "quantity of the money in circulation"?
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