The quantity of money that is in circulation at a given time is referred to as the money supply. Due to the connection between money and macroeconomic variables like inflation, changes in the supply of money are closely monitored.
Right response: D
An asset that is bought with the intention of earning money in the future is called an investment. When the investment is interest-sensitive, fluctuations in the money supply will alter the investment.
The term "money supply" refers to both the amount of money that can be included in an economy and the amount of money that is available to a nation's population. There are two components that make up the money supply: banks' demand deposits and currency. There are two ways the currency is made: coins and paper money.
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