Newspapers in the nation of Hasalot report a significant increase in money supply during the past few months. This information indicates that Hasalot may experience a serious recession in the near future.

Question

Quizplus · Accepted Answer

An increase in the money supply tends to stimulate spending, deterring a recessionary climate. The increased spending is more likely to create inflationary pressures in Hasalot because there will be more money available to buy the same amount of goods and services.

Newspapers in the Nation of Hasalot Report a Significant Increase