If there is too much money moving in the economy
A)unemployment will probably rise.
B)prices may rise, causing inflation.
C) prices will fall, causing widespread business failure.
D) both a and b, but not c

Question

Quizplus · Accepted Answer

When there is too much money moving in the economy, demand for goods and services increases, which can lead to a rise in prices, known as inflation. This can also lead to a decrease in the purchasing power of money, as the value of currency decreases. Unemployment may not necessarily rise in this scenario, and prices falling is not a common outcome when there is an excess of money in the economy.

If There Is Too Much Money Moving in the Economy