Most economists believe that a permanent increase in the money supply will generate inflation and make the prices of everyday goods and services higher than they are today. Is this scenario likely given the large reserve injections in the U.S. and world money markets? Why or why not?

Some economists believe that markets are highly efficient in the sense that prices and interest rates adjust immediately to guarantee full employment. If this were true, would the Fed's reserve injections have any effect on credit markets or the economy as a whole?Please substantiate your answers with reasons.

For the most part, the Federal Reserve's main concern is first and foremost inflation, and secondarily unemployment. Given these two goals, should the Federal Reserve intervene every time the stock market takes a plunge? Please substantiate your answer with reasons.

What do you think ?

Yes, increase in money supply will generate inflation in my opinioon. But could you provide reasons

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In my research I would like to know whether the amount of money the Fed can create through purchasing government bonds is nearly limitless?

What does your textbook say?

Initially I thought Dr Vasudev Iyer has copied questions from here,
But I noticed DEON...

Good idea