Question

a.
Which of the following is a cause of inflation?
consumers growing apathetic and failing to notice attempts to raise prices
b demand continually exceeding supply, leading to an imbalance of money and goods in the
market
C a natural consequence of the use of money instead of trade goods
d government intervention demanding that prices be raised

Answer 1

Answer:

D. government intervention demanding that prices be raised

Step-by-step explanation:

Inflation means when prices increase and fall in purchasing value of money. The only logical answer would be "Government intervention demanding that prices be raised. " Because it is the only one that talks about prices increasing.

Answer 2

The answer choice which is a cause of inflation is; Choice B; demand continually exceeding supply, leading to an imbalance of money and goods in the market.

What is then cause of Inflation?

Inflation is simply a measure of the rate of rising prices of goods and services in an economy. More specifically, a surge in demand for products and services can cause inflation as consumers are willing to pay more for such product in less supply.

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