If inflation occurs when the money supply expands, what happens when the money supply contracts? (Think about this one) Prices will adjust to compensate for the altered size of the money supply. The price of everything is dramatically reduced to the point of nearly being 0. O Nothing happens. O Prices also rise.

If inflation occurs when the money supply expands, what happens when the money supply contracts? (Think about this one) Prices will adjust to compensate for the altered size of the money supply. The price of everything is dramatically reduced to the point of nearly being 0. O Nothing happens. O Prices also rise.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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