False, Because they plan to buy and travel for the holidays, Americans in December and November keep a bigger portion of their money in the form of cash than they do the rest of the year. As a result, the money supply rises.
According to M2, the money supply has increased by 7.7% year on average since 2008 as a result of the fast increase in bank reserves & currency under Federal Reserve supervision; this expansion is not seasonal.
When an economy's money supply expands more quickly than its capacity to generate goods and services, inflation results. The value of goods & services remained constant in our bidding economy, but the supply of money increased starting with round one or two.
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