Business, 22.02.2020 08:28 vladisking888

If there is an increase in the money supply that cause money to ode purchasing power and leads to inflation what happens to prices

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Answer from: klawess4

prices of commodities increases causing a rise in the overall price level.

Explanation: There is a link between money supply and inflation, if there is an increase in the money supply faster than the growth in real output will cause inflation. The implication is that there would be more money chasing few number of goods. Increase in money supply will lead to a corresponding increase in consumer spending. Change in money supply leads to a change in price level and change in the supply of goods and services. Increase in money supply leads to a decrease in the value of money , which in turn result to a rise in inflation, and inflation result to decrease in the value of money.

Answer from: yellowmiki6647

Price increases

Explanation:

Inflation is the increase in the general price level of goods and services. It is categorized into; demand-pull inflation, supply push inflation, creeping inflation, hyper inflation, etc.

Demand pull inflation is caused by the increase in the quantity demanded of goods and services while supply remained unchanged.

Supply push inflation is caused by thee decrease in the quantity supplied of goods and services when demand remains constant.

Creeping inflation is a form of inflation in which the general price level of goods and services increase slowly over time.

Hyper inflation is a situation in which there is a sudden hype in the general price level of goods and services.

Answer from: Quest

Secured loans are protected by collateral security. examples: title loans where the borrower uses the car title as collateral security interest rates are lower and repayments are longer therefore risk is low as a collateral security is given as guarantee to the bank in case of failure to pay the loanunsecured loans are not protected by collateral security but it is given on the creditworthiness of the borrower, trusting that she/he will pay on time. examples; payday loans is a short term loan where the borrower lends money from the bank and pays is back when the borrower receives his/her wages.interest rates are high and repayments are shorter. but the risk is high as no collateral security is given as a guarantee to the bank for payment of the loan

Answer from: Quest

the first one $24,630

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