Suppose that an economy in 10000 B.C. used a rare stone as its money. Suppose also that the number of stones declined over time as stones were accidentally destroyed or used as weapons. What probably happened to the value of the stones over time? What would the consequences likely have been if someone had discovered a large quantity of new stones?

If the total number of stones decreased, then the value of the remaining stones would have increased due to deflation. A similar effect would happen if the money supply of a country is continually reduced.

What would the consequences likely have been if someone had discovered a large quantity of new stones?

If someone discovered a large pile of rocks, then the value of the stones would decline due to inflation. A similar effect would happen if the money supply of a country is continually increased.