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The value of money is basically its value as a medium of exchange, or, as economists put it, its purchasing power. This purchasing power depends

The value of money is basically its value as a medium of exchange, or, as economists put it, its "purchasing power". This purchasing power depends on supply and demand. The demand for money is reckonable as the quantity needed to effect business transactions. An increase in business requires an increase in the amount of money coming into general circulation. But, the demand for money is related not only to the quantity of business but also to the rapidity with which the business is done. The supply of money, on the other hand, is the actual amount in notes and coins available for business purposes. If too much money is available, its value decreases, and it does not buy as much as it did, say, five years earlier. This condition is known as "inflation". What probably will happen with business if the amount of money coming into general circulation decreases? The business probably increases The business is probably stagnant The business also probably decreases The business is not influenced What probably happened if there is much money, its value increased, and it buys as much as it did? There is probably inflation There is probably disinflation There is probably hyperinflation There

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