Inflation is caused by

Name: Inflation is caused by
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Inflation occurs when there is too much money in circulation (i.e., too many dollars) relative to the amount of goods and services available to purchase. This causes prices to rise, as more people are competing to buy the same limited amount of goods. High taxes, fluctuation in prices, increases in the price of gold, low stock market returns, and stringent government regulations may have an impact on the economy, but do not directly cause inflation.

Inflation Is Caused by