An increase in money supply without an increase in productivity typically leads to an increase in _________________.
A) employment
B) price inflation
C) gross national product
D) national standard of living
E) price deflation

Question

Quizplus · Accepted Answer

An increase in money supply without an increase in productivity leads to an increase in demand for goods and services without a corresponding increase in supply, causing prices to rise. This is known as inflation.

An Increase in Money Supply Without an Increase in Productivity