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we are interested in the growth rate of the money supply because

we are interested in the growth rate of the money supply because

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Expert Solution

Reasons for interested in the growth rate of the money supply:

  • Money is used in virtually all economic trasactions.
  • It is one of powerful effect on economic activities.
  • Increase in supply of money will results in lowering interest rates which encourages investment.
  • This will also helpful for business people for increasing sales by ordering more raw materials and increasing productions.
  • If business activities increases will results to increase labours and raises demand for capital goods.
  • Stock market prices rise and firms issue equity and debts.

jeff jeffy answered 2 years ago
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