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What is a ready supply of money called?
Drugs.
Would having a money supply twice as large as it is currently makes trade twice as easy?
An decrease in the required reserve ratio leads to an increase in the money supply
How large should the money supply be?
The money supply should never grow beyond the potential demand. Growing beyond has a tendency to cause inflation and other economic pressures.
When the government attempts to cover large deficits by creating more money. what is the probable result called?
Inflation. Increasing the money supply dilutes the value of the money already in the economy. This dilution has the effect of driving up prices, thus inflation.
A market where a few large suppliers control the supply of a product is called?
Oligopoly.
What is a ready supply of money called?
Drugs.
Would having a money supply twice as large as it currently is make trade twice as easy?
An decrease in the required reserve ratio leads to an increase in the money supply
Would having a money supply twice as large as it is currently makes trade twice as easy?
An decrease in the required reserve ratio leads to an increase in the money supply
How large should the money supply be?
The money supply should never grow beyond the potential demand. Growing beyond has a tendency to cause inflation and other economic pressures.
When the government attempts to cover large deficits by creating more money. what is the probable result called?
Inflation. Increasing the money supply dilutes the value of the money already in the economy. This dilution has the effect of driving up prices, thus inflation.
A market where a few large suppliers control the supply of a product is called?
Oligopoly.
What is it called when the government uses some tool other than money to allocate goods?
supply management
What is it called when it takes more money to buy the same goods?
A price increase caused by a larger currency supply is called inflation. If the supply of the goods remains the same, the result is a higher price, in effect devaluing the money.
A price floor will cause a large surplus when demand is and supply is?
A price floor will cause a large surplus when the demand is low and the supply is high. The floor is the lowest point at which something can be sold without losing money.
If the fed wants to increase the money supply it should?
If the Fed wants to increase the money supply, they should buy the government bonds. The actions that can be used by the Fed to increase the money supplied is called the monetary policy.
The idea that prices income and economic stability are primarily a function of growth in the money supply is called?
This is known as money, or currency, stability. Prices, income and economics must be stable and constant in order for the money supply to grow.
Several office supply companies decide to combine into one large company. What is this called?
horizontal merger
