There is a(n)_______ relationship between the value of money and the quantity of money in circulation.

Question

Quizplus · Accepted Answer

The relationship between the value of money and the quantity of money in circulation is an inverse relationship. As the quantity of money in circulation increases, the value of each unit of currency decreases. This is known as inflation. Conversely, as the quantity of money in circulation decreases, the value of each unit of currency increases. This is known as deflation.

There Is A(n)_______ Relationship Between the Value of Money and the Quantity