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goji.go goji.go
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11 years ago
What are the possible consequences of a continual expansion in the money supply?
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Diesel
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bbb
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11 years ago
If the money supply continues to expand, eventually there may not be enough goods and services to satisfy demand. When demand is high, prices will rise. An overall rise in price results in inflation, which leads to a decrease in the purchasing power of the dollar. To compensate, businesses increase wages to compensate for the price increases and eventually increase prices to compensate for the expanded costs of production.
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goji.go Authorgoji.go
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11 years ago
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