Which of the following is a possible cause of short-run inflation?

Question

Quizplus · Accepted Answer

An increase in velocity of money can lead to short-run inflation as it implies that the same amount of money is changing hands at a faster rate, leading to a temporary surge in demand and prices. A decrease in the money supply (A) or an increase in output (C) would likely have a disinflationary effect, while a decrease in velocity (D) would also have a deflationary effect in the short run.

Which of the Following Is a Possible Cause of Short-Run