How does an increase in money supply weaken the value of the dollar?

Can someone explain to me in the simplest of terms, how an increase in the money supply makes the dollar worth less. I understand, that the more there is of anything, the less it is worth, but why? Why would increasing a money supply of 2 billion to 4 billion make the dollar worth less?

How does an increase in money supply weaken the value of the dollar?
Imagine if you will, that congress gets a great idea, and decides to boost the economy by passing a law requiring job nation wide to double your salary overnight. if you made 50k a year, you now make 100k.





However, its not just YOUR salary, its everyone in your neighborhood, in your town, in your city, in you state.





So nothing has changed... You (and everyone around you) still have the exact same demand for products, and the same factors of supply still exist. So what happens when you go to the car dealership with your new wealth? You find that the dealership has raised prices so that supply and demand continue to match, and that 50k corvette is now priced at 100k to make up for the fact that everyone now has twice as much money.





Hope this example helps.
Reply:It is because what was once worth 2 billion is now priced at 4 billion. Meaning the dollar is worth half as much as it was before. The value of a currency goes down if the amount of currency in use is increasing while the value of whatever is owned is not.
Reply:well it is simple- for example- if u had a penny- and it was the only money u have it would be valuable to u right? now if u had 4 million dollars u could afford to loose a penny. This aplies to every other dollar amount as well.