select the correct answer. what is inflation? a. an increase in the supply of currency that reduces the…

select the correct answer. what is inflation? a. an increase in the supply of currency that reduces the currencys value b. a demand for more goods than can be met by production c. an increase in unemployment due to a serious recession d. an excess of goods that results in lower prices

select the correct answer. what is inflation? a. an increase in the supply of currency that reduces the currencys value b. a demand for more goods than can be met by production c. an increase in unemployment due to a serious recession d. an excess of goods that results in lower prices

Answer

Brief Explanations:

Inflation is typically defined as a general increase in prices and fall in the purchasing - power of money, often caused by an increase in the money supply. Option A describes this concept accurately as an increase in the supply of currency reduces its value, leading to inflation. Option B is about demand - pull factors but doesn't fully define inflation. Option C is about unemployment during a recession, not inflation. Option D describes deflation (fall in prices due to excess supply), not inflation.

Answer:

A. an increase in the supply of currency that reduces the currency's value