According to an old saying, when too much money is chasing too few goods, we have a(n)
A)recessionary gap.
B)inflationary gap.
C)full employment.
D)paradox of thrift.

Question

Quizplus · Accepted Answer

When too much money is chasing too few goods, it leads to an increase in demand in the market which results in a rise in the prices of goods, thereby causing inflation. This situation is known as an inflationary gap.

According to an Old Saying, When Too Much Money Is