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explain how controlling money supply is helpful in refusing excess demand

Posted by Arjun Veerapandian 3 years, 6 months ago

CBSE > Class 12 > Economics

1 answers

Mahabeer Singh Aswal 3 years, 6 months ago

If certain measures are taken in order to reduce money supply in the economy, then the aggregate demand and purchasing power of the consumers will fall and as a result the excess demand will get checked and the economy will move toward its equilibrium level.

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