The primary cause of inflation is
A)growth in the quantity of money.
B)variability in relative prices.
C)inter-bank lending.
D)reduced velocity of money.

Question

​The primary cause of inflation is
A)​growth in the quantity of money.
B)​variability in relative prices.
C)inter-bank lending.
D)reduced velocity of money.

Quizplus · Accepted Answer

The primary cause of inflation is the growth in the quantity of money, as increasing the money supply typically leads to higher prices when more money chases the same amount of goods and services.

​The Primary Cause of Inflation Is

The Primary Cause of Inflation Is