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Question

___ is an increase in the quantity of money in circulation without any corresponding increase in goods thus leading to an abnormal rise in price levels.


A

inflation

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B

Inflation

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C
High-powered money
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D
Stagflation
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Solution

The correct options are
A

inflation


B

Inflation


Inflation refers to the increase in the quantity of money in circulation without any corresponding increase in goods thus leading to an abnormal rise in price levels.


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