There is a decrease in prices due to oversupply of goods and services compared to the amount of money available to purchase them when the money supply does which of the following?

Question

Quizplus · Accepted Answer

When the money supply is shrinking, there is less money available to purchase goods and services. This results in a decrease in demand, which leads to an oversupply of goods and services relative to the amount of money available to purchase them. Therefore, prices decrease.

There Is a Decrease in Prices Due to Oversupply of Goods