In general,the only thing that can cause a sustained increase in the rate of inflation is:

Question

Quizplus · Accepted Answer

Inflation is primarily caused by an increase in the money supply relative to the supply of goods and services in the economy. When the money supply grows at a faster rate than the supply of goods and services, each unit of currency becomes worth less and prices for goods and services rise. Therefore, a sustained increase in the rate of inflation can only be caused by a high rate of growth in money (Choice A). Unemployment, a decrease in real GDP, and an increase in federal income taxes may have an impact on inflation but are not likely to cause a sustained increase in the rate of inflation.

In General,the Only Thing That Can Cause a Sustained Increase