A rapid increase in the money supply can cause ______, which could lead to a rapid increase of prices due to __________ compared to the amount of goods and services.

Question

Quizplus · Accepted Answer

A rapid increase in money supply causes inflation. This is because an increase in the supply of money without a corresponding increase in the supply of goods and services leads to an oversupply of money, which in turn leads to an increase in prices due to the excess demand for goods and services.

A Rapid Increase in the Money Supply Can Cause ______