If the amount of available money in a country's economy were to increase suddenly, what consequence would you expect to follow?
A. A period of inflation
B. A period of deflation
C. An immediate depression
D. A sudden decrease in demand for goods

A sudden increase in a country's available money supply is likely to lead to inflation due to higher consumer spending and demand outpacing supply. The best answer is A. A period of inflation. Other consequences like deflation or immediate depression are less likely in this context.
;

Answered by Anonymous | 2025-07-06

An unexpected increase in a country's available money supply is likely to cause a period of inflation, driven by increased consumer spending and demand for goods. This phenomenon is rooted in the economic principle where increased money leads to rising prices when supply doesn't match demand. Other options, like deflation or a depression, are less likely in this context. ;

Answered by GinnyAnswer | 2025-07-06