Years the supply of circulation money

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In the last few years the supply of circulation money has increased dramatically but inflation has remained low. Why?

  • The dollar is now worthless.
  • We are engaging in barter where we exchange things for things. Money is not necessary.
  • We are a society that likes to save, not spend.
  • We are holding on to dollars longer.

According to our permanent income discussion what can happen when someone receives a one-time, $500 end-of-year bonus check? [a]

  • 100% of it will be spent.
  • 100% will be given to a charity.
  • 100% of it will be given to family members.
  • Only a small percentage of it will be spent.

Reference no: EM132072238

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