Answer to Question #181727 in Macroeconomics for Aftab Uddin

Question #181727

What will happen if BD prime minister decides to give away cash money to every citizen of Bangladesh, so that they could buy their necessary goods for their survival during the upcoming lockdown. To explain this scenario, please use the quantity theory of money.

Expert's answer

an increase in the money supply in this way leads to a sharp increase in the level of inflation in the country

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