Question

An increase in the money supply causes

which of the following?

A. stagnationary pressure
B. deflationary pressure
C inflationary pressure

Answer 1

Inflationary Pressure

Step-by-step explanation:

Inflationary pressures are the underlying causes of inflation. These pressures are the reason that the production of goods increases to meet or exceed consumer demand or that prices increase due to lack of supply. Inflationary pressures cause the economy to adjust as a result of supply and demand.