Causes for Increased Money Supply
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Q.
Do price ceilings and floors change demand or supply?
Q. Identify the causes for the increase in money supply.
- Generating new money
- Decreasing rate of interest on debt
- Increase in money circultation
- Decrease in the population
Q. Identify the reasons responsible for price rise.
- Increase in export
- Decrease in monetary supply
- Population growth
- Smuggling, hoarding, and black marketing
Q. How does the government fund the expenditures if they are more than the revenues of the government?
- Printing new currency notes
- Increasing the tax rates
- Laying off government employees
- Charging high interest rates