200k views
3 votes
In 3 or 4 sentences, explain how increasing the money supply can result in economic growth.

User Tomoyuki
by
7.3k points

2 Answers

2 votes

Increasing the money supply puts more money in the hands of individuals, although increasing the money supply can cause inflation and the government to go into more debt, by stimulating the economy more people invest and consume which results in economic growth and more jobs.

User Shijilal
by
7.1k points
1 vote

The value of the American dollar would go down drastically. By doing that it would increase the prices of basically anything and everything. It will place our country in an immense debt and could potentially have our country fail.

User Stef Heyenrath
by
8.1k points

No related questions found