Inflation is caused by ________.
A) unions
B) rapid growth of the money supply
C) excess supply
D) low rates of capacity utilization

Question

Quizplus · Accepted Answer

Inflation is caused by a rapid growth of the money supply, as there is an excess of money chasing a limited supply of goods and services, which drives up prices. The other choices (unions, excess supply, low rates of capacity utilization) are not direct causes of inflation.

Inflation Is Caused by ________