A primary cause of inflation is:

Question

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Inflation occurs when there is too much money in circulation relative to the goods and services available, leading to an increase in prices. The government central bank printing excess money can contribute to inflation by increasing the money supply without a corresponding increase in productive capacity. Choices A, B, and D may be factors in contributing to inflation in certain situations, but they are not the primary cause. Choice E may be a result of a growing economy, but it is not a primary cause of inflation.

A Primary Cause of Inflation Is