Luz manages a chain of bars and restaurants in a tri-county area that has recently experienced an economic boom because of fracking and high oil prices. What is most likely to happen when there is too much money in the tri-county economy?
A) too many goods and services
B) a drop in interest rates
C) high economic growth
D) an increase in prices

Question

Quizplus · Accepted Answer

Too much money in an economy is characterized by rising prices-inflation. Inflation tends to go along with higher interest rates and lower economic growth.

Luz Manages a Chain of Bars and Restaurants in a Tri-County