Question

Inflation occurs when the supply of money is than the availability of good and services in an economy.

• A. more
• B. less
• C. equal

Answer 1

The correct option is B less

Inflation is the process in which the price of a product increases over a period of time. The regulation of money supply would result in less money circulation and would encourage people to spend less. Eventually, it would reduce the prices of goods and services due to less demand.