Anonymous
Anonymous asked in Social ScienceEconomics · 1 month ago

When CB decreases money supply how do we get from point A to B?

What causes people to want to hold less money as the money supply decreases but prices don't change?

Update:

When there is less money shouldn't people want more? 

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3 Answers

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  • Oiy
    Lv 6
    1 month ago

    Because interest rate must be high.

  • Zirp
    Lv 7
    1 month ago

    Who is "CB"?

    Most people don't choose to "hold money". They buy what they need when they need it, as long as they can afford it

  • 1 month ago

    I would walk...

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