What is almost always the cause of large or persistent inflation?
A) an increase in demand for domestic production
B) growth in the quantity of money
C) foreign competition
D) higher worker productivity

Question

Quizplus · Accepted Answer

When the quantity of money in an economy increases, it can lead to an increase in demand without a corresponding increase in supply, which can drive up prices and cause inflation. This is often seen in situations where governments print more money to finance budget deficits or to pay off debt.

What Is Almost Always the Cause of Large or Persistent