An economy only uses cash. If the quantity of money in the economy is $10,000, then aggregate spending is limited to $10,000.

Name: An economy only uses cash. If the quantity of money in the economy is $10,000, then aggregate spending is limited to $10,000.
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While the quantity of money in the economy may influence aggregate spending, it is not necessarily limited to that amount. Credit and borrowing can also contribute to aggregate spending beyond the available cash.

An Economy Only Uses Cash