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Explain why money supply should be …

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Explain why money supply should be controlled?

Posted by Varun Ccc 6 years, 6 months ago

CBSE > Class 12 > Economics

1 answers

Chesta Pawan Manchanda 6 years, 6 months ago

Money supply should be controlled because it holds the economy of an country. If money supply will increase, people of that country get unlimited or more than earlier money , due to this resources become more limited and unnecessary demand will increase. This will lead to inflation. Inflation will cause a great depression in economy.That's the reason why should be money supply controlled.

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