In the long run, an increase in the money supply has what effect?
435730
an increase in the money suply would have an increase inthe real gross domestic product, this is because we assume that the production level in the short run is of static equilibrium and thus more money is supplied which would increase the level of unemployment a this would increase the leve of productivity and also the real gross domestic product
664685
a) Demand for dollars declines, reducing its value.\n\nb) Payments in China are in US currency, but if prices are lower, demand for dollar will decline as will its value.\n\nc) Assuming no decline in imports, demand for dollars increases, increasing its value.\n\nd) Increased supply likely, so value goes down.\n\ne) Relative demand for foreign currency increased, thus moving value of dollar down.\n\nMake sure you vote!\n\nc
1121290
First of all consider money as also a commodity... If there is a more need of money then the cost to get it goes up. In other words if you really really need money and you are at a lender, he may hike the interest by a point. Now conisder the case of another wealthy guy comming there to get a lot of money. Your interest rate goes up again by a point and possibly you may not get money from that lender.\n\nUS economic situation is pathetic with heavy bleeding due to foriegn military operations, reconstructions and high deficit trade with China. Now the US Goverment is itself a big borrower. When the US Govt. borrows money the interest rate goes up... This is the easiest way to explain this.  Another diamension is, to keep inflation in check the Govt has to increase the interest rate too. \n\nDue to inflation and bleading of money, US Dollar is getting weaker. If dollar becomes weaker, foriegn companies get less money back on sales. So foriegn business that sell products to America will see reduced profits. Example: Indian software companies.\n\nIs it clear as mud?
1077470
From Wikipedia (there is much more at the link I provided):\n\n"A market based exchange rate will change whenever the values of either of the two component currencies change. A currency will tend to become more valuable whenever demand for it is greater than the available supply. It will become less valuable whenever demand is less than available supply (this does not mean people no longer want money, it just means they prefer holding their wealth in some other form, possibly another currency)."\n\n"Increased demand for a currency is due to either an increased transaction demand for money, or an increased speculative demand for money."\n\n"A currency will tend to lose value, relative to other currencies, if the country's level of inflation is relatively higher, if the country's level of output is expected to decline, or if a country is troubled by political uncertainty."
470900
Purchasing power measures the value of money in terms of the quantity of goods and services it can buy. The purchasing power of money changes over time and is affected by the rate of inflation. If prices increase, the purchasing power of money declines. Thus, for a person to increase purchasing power, their income must increase more than the price of goods and services. \n\nTo compare purchasing power from different years, an index such as the Consumer Price Index is often used. Different time periods can be compared against the current period to see how purchasing power has changed.
104602
by increasing the money supply, that would make more money available for loans which would lead to more people buying houses, which means higher sales of durable goods(furniture, appliances), which puts money in a lot of employee's pockets that they then go spend on durable goods/foods that put money in other people's pockets. and so it keeps going until people don't want to spend and then you have a problem. that is what works in the states, alan greenspan made a career out of doing just that.
755414
No it will not.\nCurrencies go up and down due to various economic indicators and not due to political changes.
392189
The price depends on supply and demand.\nCurrently demand is high as the world economy is expanding.
542885
Global supply looks to be static or steadily decreasing over time, and demand is increasing, therefore prices will continue to rise, bringing economic benefit to those countries at least in the near future.
20575
% change in quantity that consumer is willing to buy, divided by % change in income (assuming that the price of good is held constant). \n\nTells you how much impact do changes in income have on the demand. If less than 1, it is called inelastic, and there is little change in demand; is larger that 1, - elastic and high changes.
684893
yes it has a great effect in macro economics dealing with exchange rates and interest rates and foreign trade. a weak or undervalued currency is better for manufacture of goods in your country and a strong currency is better if you import goods from other countries.
10242
If more money is printed, inflation increases. An extreme example is pre-WWII Germany, where the Mark fell from 4.2 to the dollar to 1,000,000 to the dollar in August 1923 and 4,200,000,000,000 November 20th. The only way to fulfill the needs of everyone would be to equalize the amount of money that people have. As long as some have more than others, some people will not be able to buy what they need.
615592
when oil prices go up, It costs more to make & deliver goods. In turn the price of goods go up. Hence inflaton.
295696
you increase the demand on your money by increasing your debt load.
614482
Money makes the world turn.
450804
from, an article about the "Central Banking System.  Money Supply" on http://www.sparknotes.com/economics/macro/banking/section2.rhtml\n\nQuoting,\n\n"There are three basic ways that the Fed can affect the money supply. \n\nThe first is through open market operations. \n\nThe second is by changing the reserve requirement. \n\nThe third is through changing the federal funds interest rate. \n\nEach of these actions in some way affects the total amount of currency or deposits available to the public."
508214
The Reserve Bank of a country usually will decide how much money is in circulation.\n\nThis is governed by the interest rate it will charge for the money that is on offer for borrowers which can be other banks who will in turn lend it to other borrowers.\n\nIf the inflation is likely to increase then the supply of money is restricted by increasing the interest rate so that the borrowers will not borrow or borrow less.\n\nConversely to kick start the economy the interest rates are decreased so that the companies will borrow and start the businesses and promote economic growth.