beydisy4873 beydisy4873
  • 25-04-2019
  • Business
contestada

What is one reason why a government will deliberately inflate its national money supply?

Respuesta :

lj185
lj185 lj185
  • 25-04-2019

To attract oversea investors and working immigrants

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Abotaiwo
Abotaiwo Abotaiwo
  • 05-02-2020

Answer:

To increase aggregate demand

Explanation:

Inflation of national money supply is one of the tools of the monetary authority, that is the central bank of a country to stimulate aggregate demand. Government resort to increasing the money supply when it embarks on expansionary monetary policy to achieve certain macroeconomic goals or objectives. some of the monetary policy tools used to achieve this are : interest rate, reserve requirement, e.t.c.

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