Secret Finance

usaman345 asked:


I am just a regular person and not an economics student. Regardless, can someone please explain to me (in layman’s terms) the effect of changes in money supply on inflation.

I understand that demand in excess of supply is a cause of inflation and I’ve heard that inflation is when too much money chases too few goods (if I remember that line correctly). But what exactly does this mean in layman’s terms? How does increasing the money supply effect, for example, the price of a gallon of milk or gasoline?

In advance, thank you for any help received.

usaman345 asked:


I am just a regular person and not an economics student. Regardless, can someone please explain to me (in layman’s terms) the effect of changes in money supply on inflation.

I understand that demand in excess of supply is a cause of inflation and I’ve heard that inflation is when too much money chases too few goods (if I remember that line correctly). But what exactly does this mean in layman’s terms? How does increasing the money supply effect, for example, the price of a gallon of milk or gasoline?

In advance, thank you for any help received.

usaman345 asked:


I am just a regular person and not an economics student. Regardless, can someone please explain to me (in layman’s terms) the effect of changes in money supply on inflation.

I understand that demand in excess of supply is a cause of inflation and I’ve heard that inflation is when too much money chases too few goods (if I remember that line correctly). But what exactly does this mean in layman’s terms? How does increasing the money supply effect, for example, the price of a gallon of milk or gasoline?

In advance, thank you for any help received.

Jogol asked:


How will the system of money work to keep from having an extremely disproprotionate balance of wealth and poverty if the rate of population growth continues to soar and we have many millions of more people in the future?

Does the system of money have a mechanism built in to combat something like this? For instance, will more money be made (not currency) in order to support more people?

What is money? Is it silver or what?

BT is a legend asked:


What I need to know is how much money we as a country sepnd on domestic poverty. It would be good if you could include the link for the site you got the info.