Question

Question 5 of 10

An increase in the money supply that causes money to lose its purchasing
power and prices to rise is known as
A. deflation
B. recession
C. conflation
D. inflation

Answer 1

Answer:

D - Inflation.

Step-by-step explanation:

Option A: Deflation is the exact opposite definition of inflation. Deflation is when consumer and asset prices decrease over time, and purchasing powers increase. So option A is incorrect.

Option B: Recession is a period of temporary economic decline, which doesn’t have anything to do with inflation. So option B is incorrect.

Option C: Conflation is when two or more sets of info or text are merged, which has nothing to do with what’s asked or answered. So option C is incorrect.