What do you mean by Growth Rate of Money Supply ?
Growth Rate of Money Supply refers to an increase in the supply of money typically lowers interest rate, which in turn, generates more investment and puts more money in the hands of consumers, thereby stimulating spending. Businesses respond by ordering more raw materials and increasing production. The increased business activity raises the demand for labour. The opposite can occur if the money supply falls or when its growth rate declines. Banks lend loans in less quantity, businesses put off new projects, and consumer demand for home mortgages and car loans declines. Change in the money supply has long been considered to be a key factor in stimulating economic performance and business cycles.
How to Calculate Growth Rate of Money Supply?
Growth Rate of Money Supply calculator uses Growth Rate of Money Supply = Rate of Inflation+Growth Rate of Real Gross Domestic Product to calculate the Growth Rate of Money Supply, Growth Rate of Money Supply is defined as changes in the value of all goods and services produced by an economy, the economic output of a country, while accounting for price fluctuations. Growth Rate of Money Supply is denoted by gm symbol.
How to calculate Growth Rate of Money Supply using this online calculator? To use this online calculator for Growth Rate of Money Supply, enter Rate of Inflation (R) & Growth Rate of Real Gross Domestic Product (gy) and hit the calculate button. Here is how the Growth Rate of Money Supply calculation can be explained with given input values -> 1010.06 = 0.06+1010.