If the money supply and total demand increase faster than output, prices will:
A) fall
B) stay the same
C) rise
D) reflect lower inflation

Question

Quizplus · Accepted Answer

When the money supply and total demand increase faster than output, there will be more money chasing the same amount of goods and services. This will lead to an increase in prices, known as inflation. Therefore, prices will rise.

If the Money Supply and Total Demand Increase Faster Than