High and persistent inflation is caused by
A)unions increasing wages too much.
B)OPEC raising the price of oil too much.
C)governments increasing the quantity of money too much.
D)regulations raising the cost of production too much.

Question

Quizplus · Accepted Answer

High and persistent inflation is primarily caused by governments increasing the quantity of money too much, which leads to a decrease in the value of money and an increase in prices. Unions increasing wages, OPEC raising the price of oil, and regulations raising the cost of production can all contribute to inflation, but they are not the primary cause.

High and Persistent Inflation Is Caused by