The money available to consumers, investors, etc. to spend or invest in products is known
as the money supply of the market. This money supply includes credit available to
consumers. The lower the interest charged on credit facilities, the more consumers are
likely to use credit and the higher the money supply in the country. An increase in the
money supply is referred to as a growth in the money supply. If the money supply in the
country is high, this could result in increased demand for products in the products market,
which in turn could lead to inflation (rising prices). |