Money Supply

Money supply
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In a situation where an increase in money supply is analogous to giving people more money means that; banks have enough money. For this reason, it becomes easy to acquire money from the banks through loans and grants and as such many citizens readily accept the offer.
This creates a scenario where the consumers are bloated with cash flow. This result rapidly creates a high demand for goods and services in most cases which finds different producers not ready to deliver. Their output production of goods and services get outstripped by the rapidly growing demand to an extent they cannot handle (Berlatsky, 2013).
When demand outstrips supply, it creates inflation ...