0
Physically, in the US, coins are minted in Philadelphia, Denver, San Francisco, and West Point. Paper money is printed at the Bureau of Engraving and Printing in Washington, DC, or at their franchise substation in Fort Worth, Texas. Economically, "money" is generated by the commerce of generating product, rendering of services, or by the increase in value of investments.
Still curious? Ask our experts.
Chat with our AI personalities
Blake
Beau
Lao
Add your answer:
Earn +20 pts
How does raising the discount rate affect the money supply?
Decreases the money supply
What factors determine money supply?
factors which determine money supply is: open market operations, variable money supply bank rate policy.
How does the money supply affect interest rates?
The money supply affects interest rates by influencing the supply and demand for money in the economy. When the money supply increases, there is more money available for lending, which can lower interest rates. Conversely, a decrease in the money supply can lead to higher interest rates as there is less money available for borrowing. Overall, changes in the money supply can impact interest rates by affecting the cost of borrowing and lending money in the economy.
What effect does an increase in the money supply have on inflation?
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.
If there is an increase in the money supply that causes prices to rise and leads to inflation what happens to the money?
If there is a increase in money supply that is causing price to rise money only does one thing. The money that is taking is used for supply.
