BUSA 3000 Study Guide - Quiz Guide: Money Supply

• School: GSU
• Department: Business Administration--Busa
• Course: BUSA 3000
• Professor: Maria Luiza Pinho

Document Summary

In a short essay, describe the underlying reasons for inflation. Provide an example of a nation that faced a high rate of inflation. The definition of inflation is just increase in price and decrease in the purchasing value of money. There are many reasons for inflation, and an increase in funds with the central bank. In short, there are money in the system then money would be worth less than before and you wouldn"t be able to buy as much stuff as before. In most of this type of inflation national money supply is being produce quicker than national productive output. This could happen when the economy is in a bad place and this can cause harm or help the economy out. For example, us"s economy had been printing money to help save the economy from the void-