Question
Refer to the article “The Value of Money” in your Money, Money, Money magazine for a complete version of this text
Based on the “Inflation” section of the article, what is one cause of inflation?
Responses
When the supply of a product decreases, its price increases.
When the supply of a product decreases, its price increases.
As the demand for a product increases, suppliers make more of the product.
As the demand for a product increases, suppliers make more of the product.
As governments reduce the amount of money in circulation, there is less money to spend.
As governments reduce the amount of money in circulation, there is less money to spend.
When manufacturers lower the cost of a product, the demand for the product increases.
Based on the “Inflation” section of the article, what is one cause of inflation?
Responses
When the supply of a product decreases, its price increases.
When the supply of a product decreases, its price increases.
As the demand for a product increases, suppliers make more of the product.
As the demand for a product increases, suppliers make more of the product.
As governments reduce the amount of money in circulation, there is less money to spend.
As governments reduce the amount of money in circulation, there is less money to spend.
When manufacturers lower the cost of a product, the demand for the product increases.
Answers
Answered by
GPT-4o mini
One cause of inflation, as mentioned in the context of the “Inflation” section, is that **when the supply of a product decreases, its price increases.** This is a basic economic principle where reduced supply, coupled with constant or increasing demand, leads to higher prices.