The Importance of Increasing the Money Supply in Real World Economy

In a simplified economy, there's nothing else for to spend my money on. Jelly beans are the only goods and services available, so they're the only thing i can spend mymoney on. And if i have more money, that's how i'm going to use it. As a result, increasing the money supply invariably leads to a rise in prices. That's just another way of saying that putting more money in circulation leads to inflation. The natural exchange rates aren't as clear as in our simplified examples. You can't just divide the number of jelly beans by the number of pennies to see the natural exchange rate.