Respuesta :
The answer is true because, If the amount quantity of cost or amount supplied is always greater than quantity demanded, then the prices may or must fall in order to fed increases the money supply, and then the equilibrium of money must decrease and equilibrium price increases.
Value modifications are the end result of deliver and demand. This is authentic with fiat foreign money in addition to some other asset it's challenge to marketplace forces. When the deliver of cash will increase or decreases, the relative fee of that cash rises or falls with the ones forces. Demand for sure currencies can fluctuate, as well.
The amount idea of cash states that the fee of cash is primarily based totally on the quantity of cash withinside the economy. Thus, in line with the amount idea of cash, whilst the Fed will increase the cash deliver, the fee of cash falls and the charge stage will increase.
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