Since the Federal Reserve was established in 1913 the US has experienced 3 periods of high inflation and each was preceeded and accompanied by a period of sharp increases in the money supply.

Question

Quizplus · Accepted Answer

This statement is true. The three periods of high inflation in the US occurred in the 1910s, 1970s, and 2010s, and each was preceded and accompanied by a period of sharp increases in the money supply. This is because when there is too much money in circulation compared to the supply of goods and services, the value of money decreases, causing inflation. The Federal Reserve plays a significant role in determining the money supply through its monetary policy decisions.

Since the Federal Reserve Was Established in 1913 the US