Inflation is caused by

Question

Quizplus · Accepted Answer

Inflation is caused by too many dollars (or other currency) chasing relatively few goods. This means that when there is an abundance of money in circulation (such as through government spending or printing money), but the number of goods and services available for purchase remains constant, the value of each dollar decreases and prices rise. High taxes, increases in the price of gold, and stringent government regulations can affect the economy in various ways, but they are not the primary cause of inflation.

Inflation Is Caused by