Inflation ________.

Question

Inflation ________.

Quizplus · Accepted Answer

Inflation is the result of supply and demand for a currency. When there is an excess supply of currency in an economy, its value decreases, which leads to a rise in the prices of goods and services. Similarly, when there is a high demand for a currency, its value increases, which leads to a decrease in the prices of goods and services.

Answer: A, D 
 Inflation occurs when money is injected into an economy that is experiencing greater output. This can happen when governments print more money or through expansionary monetary policies. However, inflation can also be controlled through currency movements, such as raising interest rates, which can decrease demand for goods and services and lower inflation.