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Let us say there is a sudden increase in demand in Kenya for Italian products. Explain how this increase will have an impact on the...

Let us say there is a sudden increase in demand in Kenya for Italian products. Explain how this increase will have an impact on the money supply in Kenya's economy

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peter
When demand of Italian products is high in Kenya money supply in Kenyan economy will reduce. This is because Kenyan money will be used to purchase Italian products and thus dollar supply increase.
Thus the value of Kenyan shilling will reduce in comparison with dollar money.

PETERMAN answered the question on April 30, 2019 at 13:40

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