The most formal attire for a wedding is white tie and if you receive a wedding invitation in the mail that says white tie is required, you're pretty restricted as to what you should and should not wear.
Figure 11.5 Inflation and Money Growth in the Long Run examines annual growth rates based on observing the money supply and the price level at five-year intervals. The first observation is the annual growth rate for the period starting in January 1959 and ending in January 1964.omparing these two figures, you can see that the relationship between money growth and inflation is much tighter when we examine five-year periods, as in Figure 11.5 Inflation and Money Growth in the Long Run , rather than the monthly changes in Figure 11.4 Inflation and Money Growth in the Short Run .
Thus interest rates also are influenced by the laws of demand and supply. When the money supply increases it means that more money is available in the economy for borrowing and this increased supply, in line with the law of demand tends to reduce the interest rates, or the price for borrowing money down.Similarly when the money supply decreases, it will tend to push up the interest rates.his means the demand for borrowing money for investing in business or for consumer purchase on credit. The interest rates tend to increase when demand increases and decrease when demand increases. The equilibrium rate of interest is the rate at which the demand for money equals the supply of money.