Okay so I was thinking that money is moved from peoples and organizations, my question is that more SINGLE people that HOARD MONEY OR SINGLE ORGANIZATIONS that HOARD MONEY the (LESS CASH FLOW WILL BE POSSIBLE FROM DIVIDENDS CAPITAL GAINS AND YOUR OWN BUSINESS) This stands to reason as there will be less money and WEALTH RIGHT? At leat until that person dies money will have less cash flow right? However money will have a higher value i.e. less moving? WHAT DO PEOPLE THINK OPINIONS?
2007-10-26 08:35:49 · 2 answers · asked by Anonymous in Business & Finance ➔ Investing
I think Franco Modigliani beat you to the punch
2007-10-26 09:45:17 · answer #1 · answered by Ranto 7 · 0⤊ 0⤋
If people save the money the money will be lent out by the banks and financial intitutions where it is invested so the money supply will not be effected by people or corporations saving money.
The only way the money supply would be affected is if these people put there money under their bed and do nothing with it. But that would be stupid because inflation would errode the value of that money.
2007-10-26 08:43:20 · answer #2 · answered by smac20 2 · 1⤊ 0⤋