Question

What happens if a country rapidly increases the supply of money

(debasement)?
O the economy will boom with people having all that money :)
other countries become more interested in trade in order to acquire all that new
money
the buying power of money crashes and the economy & people suffer immensely
this has never happened so it's impossible to say what would happen

Answer 1

When a country rapidly increases the supply of money, it can lead to inflation, reducing the buying power of the currency and negatively impacting the economy and people.

Step-by-step explanation:

When a country rapidly increases the supply of money, it can result in a phenomenon known as debasement. In this scenario, the buying power of money decreases, leading to inflation. As more money is introduced into the economy, the value of each unit of currency diminishes, causing prices to rise. This can have detrimental effects on the economy and the population.

For example, if a country starts printing more money, the increased supply will lead to more money chasing the same amount of goods and services. As a result, consumers will need more money to purchase the same goods, which leads to a decrease in the buying power of the currency.

Inflation can have severe consequences, such as reducing people's purchasing power, causing businesses to struggle with higher costs, and destabilizing the economy as a whole. Therefore, rapidly increasing the supply of money can ultimately cause the economy to suffer immensely.

Learn more about debasement of currency