What does an increase in demand for goods lead to?

Deflation

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High standard of living

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Inflation

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Low standard of living

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Solution

The correct option is C Inflation
When there is more money in the economy, people will spend more, which will lead to an increase in the demand of goods. This situation would lead to inflation in an economy.

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A reduction in which of the following cases leads to an increase in the demand for goods and services?

An increase in the demand for a good will cause

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