The Bangladesh Bank has created additional money worth Tk70,794 crore through various refinance schemes and easing regulatory requirements after the Covid-19 outbreak in March for stimulating demand to revive the declining economy. (link:https://tbsnews.net/economy/banking/bangladesh-bank-creates-money-worth-over-tk70000cr- revive-economy- 76435?fbclid=IwAR108OXKcbXq6JjZj6v9FbULrDtys_QsZySUTKeAmauoqTjppgnLqU89muw#.Xq5k dXhgRqq.facebook). Do you think creating this additional money will lead to inflation? What type of inflation, demand-induced or supply-induced? Do you think it will be continued inflation? Why? Draw a relevant diagram to explain your answer

ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
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Chapter1: Making Economics Decisions
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The Bangladesh Bank has created additional money worth Tk70,794 crore through various
refinance schemes and easing regulatory requirements after the Covid-19 outbreak in March for
stimulating demand to revive the declining economy.

(link:https://tbsnews.net/economy/banking/bangladesh-bank-creates-money-worth-over-tk70000cr-
revive-economy-
76435?fbclid=IwAR108OXKcbXq6JjZj6v9FbULrDtys_QsZySUTKeAmauoqTjppgnLqU89muw#.Xq5k
dXhgRqq.facebook).
Do you think creating this additional money will lead to inflation? What type of inflation,
demand-induced or supply-induced? Do you think it will be continued inflation? Why? Draw a
relevant diagram to explain your answer.

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