If the Federal Reserve overstimulates the economy by increasing money growth too much,then inflation will:
A) make long-term planning and contracting easier.
B) create arbitrary redistribution of wealth.
C) make price signals much easier to interpret.
D) bring the economy into a recession.

Question

Quizplus · Accepted Answer

Increasing money growth too much can lead to inflation, which can cause arbitrary redistribution of wealth as the value of money changes unevenly across different sectors and groups.

If the Federal Reserve Overstimulates the Economy by Increasing Money