Which of the following statements is true? Economists generally agree that
A) the rate of inflation in the long run is determined primarily by growth in government spending.
B) factors other than money growth may influence the inflation rate from one year to the next, but they are not likely to cause sustained inflation.
C) the primary cause of inflation is increases in the money supply growth that exceed growth increases in aggregate demand.
D) the major causes of inflation are declining productivity coupled with excessive spending.

Question

Quizplus · Accepted Answer

Economists generally agree that while various factors can influence inflation in the short term, sustained inflation is primarily caused by excessive growth in the money supply relative to economic output.

Which of the Following Statements Is True? Economists Generally Agree