A financial surplus perhaps.
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.
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.
Decreases the money supply
factors which determine money supply is: open market operations, variable money supply bank rate policy.
A financial surplus perhaps.
supply management
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.
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.
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.
Decreases the money supply
there are four measure of money supply in india,
factors which determine money supply is: open market operations, variable money supply bank rate policy.
supply management
supply management
supply management
An increase in the money supply shifts the money supply curve to the right. If you look on your graph, you will see that an increase in money supply will cause the interest rate to decrease. Here's why: Fed increases money supply-->excess supply of money at the current interest rate -->people buy bonds to get rid of their excess money-->increase in the prices of bonds --> decrease in the interest rate.