When the money supply is high, the value of the dollar rises.

Name: When the money supply is high, the value of the dollar rises.
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Question

Quizplus · Accepted Answer

When the money supply is high, the value of the dollar actually decreases because there is more currency available in the economy, leading to inflation and lower purchasing power for each dollar. On the other hand, when the money supply is relatively low, the scarcity of currency increases its value in the market.

When the Money Supply Is High, the Value of the Dollar