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Scarcity as an important factor of money.
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[QUOTE="Holicent, post: 259451, member: 76163"] Well. the main reason why it is important that money becomes scarce is because it will force people to save more. As money becomes more scarce, people will be forced to save or spend their money on things that are of higher value than before. This will cause an increase in the demand for goods and services, which increases the price of everything and makes everyone's income rise. In addition, if money becomes more scarce, there will be less inflation and deflation. When there is inflation, you can buy things that you want for relatively cheap prices because prices have risen with the overall value of your money. However, when there is deflation, you can't buy things that you want as easily because prices have fallen with the overall value of your money. [/QUOTE]
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Scarcity as an important factor of money.
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