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25 January, 10:26

The

is the amount of money available in the economy, including the money in your wallet and demand deposits.

Inflation

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Answers (1)
  1. 25 January, 10:51
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    Money supply

    Explanation:

    The money supply is the entire quantity of money and other liquid assets circulating in the country at a particular time. The money supply includes cash held homes, bank accounts, and all near-money equivalents. The money supply is a macro-economic policy whose increase or decrease has a direct impact on other key economic aspects such as inflation.

    Economists analyze the money supply to formulate relevant monetary and fiscal policies. An increase in the money supply lowers interest rates and stimulates economic growth. It encourages more investments leading to increased job opportunities. A decrease in the money supply slows down economic activities in the economy.
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