Which of the following is the result when business institutions, such as the central bank, issue too much currency in the market place?

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Kenyon Good

14 July, 00:43

Which of the following is the result when business institutions, such as the central bank, issue too much currency in the market place?

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Gisselle Gill · Answer 1

When, for example, the central bank, issues too much money, the economy of the country would be seriously devastated (devaluation or depreciation regarding the currency in limiting countries).

Consider also that if citizens had more money they would spend more. Possibly, you will think that situation is not bad, but it is.

As economic halts generate crisis, sales above expected would make that the item went scarce, so the prices of that item would have to be risen (law of supply and demand) ... Who would be willing to pay for a loaf of bread 200 dollars?