An increase in the money supply can lead to inflation, but its impact on economic growth varies. Option C is correct.
An increase in the money supply can lead to inflation. When there is more money in circulation, people have more purchasing power, which can drive up prices. This is because there is more demand for goods and services, and sellers can charge higher prices.
However, it is important to note that an increase in the money supply does not automatically lead to higher economic growth. While it can help stimulate economic activity by making it easier for individuals and businesses to access credit and invest, the overall impact on economic growth depends on a variety of factors.
Hence, C. is the correct option.
--The given question is incomplete, the complete question is
"An increase in the money supply can help achieve higher economic growth, but can also lead to multiple choice A) severe recession. B) runaway growth. C) inflation. D) deflation."--