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What is different about the way money is suplied vs. the way gasoline is supplied?

What is different about the way money is suplied vs. the way gasoline is supplied?

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Answer #1

The money supply in the economy is generally fixed at a level as set by the central bank of the nation, depending on the economic situation in the economy they will decrease or increase the money supply to suit the situation. UNlike the commodity market the money supply doesn't get finished when used once, so the constant supply of money in the market is not needed, we have velocity of money that determines how quickly money is changing hands.

Gasoline is a commodity in the market that get finished when consumed once so there are firms in the market that will maintain the supply of the good depending on the demand and the price level, when the price level increase the supply can increase and when the price decrease the supply decreases.

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