In the last few years the supply of circulation money has increased dramatically but inflation has remained low. Why?
- The dollar is now worthless.
- We are engaging in barter where we exchange things for things. Money is not necessary.
- We are a society that likes to save, not spend.
- We are holding on to dollars longer.
According to our permanent income discussion what can happen when someone receives a one-time, $500 end-of-year bonus check? [a]
- 100% of it will be spent.
- 100% will be given to a charity.
- 100% of it will be given to family members.
- Only a small percentage of it will be spent.