How does an increase in money supply effect inflation?

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How does an increase in money supply effect inflation? 

Dec 7th, 2014

An increase in money supply increases inflation. When the money supply increases the wages go up and people  have more money to spend.  This increases the prices for goods. As a result, it generates inflation.  In some instances, when a government irrationally increases the money supply as it has happened in Brazil and Argentina in the past, the inflation skyrockets and hyper inflation occurs.

Dec 7th, 2014

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Dec 7th, 2014
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Dec 7th, 2014
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