Injecting new money into the economy eventually causes
A) a recession.
B) deflation.
C) stagflation.
D) unemployment.
E) inflation.

Name: Injecting new money into the economy eventually causes A) a recession. B) deflation. C) stagflation. D) unemployment. E) inflation.
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Question

Quizplus · Accepted Answer

Injecting new money into the economy increases the supply of money, leading to an increase in demand for goods and services. As demand increases relative to the supply, prices rise, which is known as inflation.

Injecting New Money into the Economy Eventually Causes