The increase in supply for all products generally reduces the demand for the specified product. If the government increases the supply of money in active circulation, than it is analogous to allocating more money to people. That is, the increase in the money supply will make a larger volume available for people to acquire. Additionally, because the exclusivity is severely reduced the value of money will decline. Also, the ability for people to borrow money from banks, and banks from the government is easier and increased (Hill, 2016).
