Asked by Yousef Abualhawa on Apr 29, 2024
Verified
In the months of November and December, people in the United States hold a larger part of their money in the form of currency because they intend to shop and travel for the holidays. As a result, other things the same, the money supply increases.
Money Supply
The total quantity of money available in the economy at a specific time, including currency, coins, and balances held in checking and savings accounts.
Currency
A system of money in common use, especially in a nation, for facilitating the exchange of goods and services.
- Understand how changes in the money supply can impact the economy.
Verified Answer
ZK
Zybrea KnightMay 04, 2024
Final Answer :
False
Explanation :
The money supply does not automatically increase just because people hold a larger part of their money in the form of currency for shopping and travel. The total money supply is determined by the central bank and banking system, not by changes in how people choose to hold their existing money.
Learning Objectives
- Understand how changes in the money supply can impact the economy.