Which of the following is not an inflation factor?
A)Excess of supply for a good or goods as compared with the demand
B)Increases in the cost of items needed to produce a good
C)Lack of competition arising from few producers for that item and barriers to new companies entering the market
D)An excess supply of money in the economy
E)All of the above are inflation factors

Question

Quizplus · Accepted Answer

An excess of supply for a good or goods as compared with the demand is not an inflation factor, but rather a factor that can lead to lower prices (deflation) as producers may need to lower their prices in order to sell their excess supply. The other options listed are all factors that can contribute to inflation.

Which of the Following Is Not an Inflation Factor