What occurs when there is a lot of money in circulation, but it is worth less and prices are rising?
Responses
recession
recession
inflation
inflation
deflation
deflation
shortage
1 answer
When there is a lot of money in circulation, but it is worth less and prices are rising, it is typically a sign of inflation. Inflation refers to the general increase in prices over time, caused by an excess supply of money in the economy. This can erode the purchasing power of money and negatively impact individuals and businesses.