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From course:

Economics A Level (DONEEEEEEE)

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Question:

How can the Money Supply being Faster than Output lead to Demand Pull Inflation

Author: eric_galvao



Answer:

-If the Money Amount doesn’t Match the Output of goods and Services [Too much Money chasing too few goods] -This leads to Prices Rising. This may happen when Interest Rates are too Low. Monetarist Economists believe this is the Biggest Cause of Inflation


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