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**NeroASERCH** · 05-21-2013, 07:45 PM

When the amount of money in the system rises in a market where there is high amount of money chasing low number of goods and services, the prices of those goods and services rise as goods. Increasing bond supply creates more money in the system, and results in inflation and high interest rates.

05-21-2013, 07:45 PM	#2
NeroASERCH Join Date Jul 2006 Posts 5,147 Senior Member	When the amount of money in the system rises in a market where there is high amount of money chasing low number of goods and services, the prices of those goods and services rise as goods. Increasing bond supply creates more money in the system, and results in inflation and high interest rates.
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