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how does volume of goods and services affect the value of money
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[QUOTE="Axis, post: 267371, member: 66672"] the value of money can be referred to as the quantity of goods and services in which a given amount of money can buy or purchase at that particular period of time. or we can also turn the value of money as the purchasing power of money. Andy and simple and different factors in which the value of money can be determined or affected but I will just take only one which is the volume of goods and services. how can this particular Factor affect the value of money? when the level of production in a particular country is high the volume of goods and services who also increased does leading to a high increase in supply and at the same time they supply of money is Constant this will add more value to money that is the value of money will increase. this is because goods and services can be purchased in large quantity with a given sum of money. but windy supply of money has been reduced and also the supply of goods and services is also at its lowest point the value of money will be affected negatively and this can lead to a high cost of living and also affecting savings and investment as well. [/QUOTE]
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how does volume of goods and services affect the value of money
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