Question

Which of the following is considered a cause of inflation?
Wages go down.
Producers raise prices to meet higher costs.
o There is not enough money in the economy.
O Demand is less than supply.

Answer 1

Inflation means- A general increase in prices and fall in the purchasing value of money.

So if you think about the question and the definition, what answer involves the money going down and or up significantly?

The answer would be,

B, Producers raise prices to meet HIGHER cost.

          Hope this helps :)