Answered

What happens during inflation?


People have less income.


There's more money in circulation and the prices rise.


Prices fall and people start spending again.


The value of a dollar does not change.

Verified Answer :

"There's more money in circulation and the prices rise" is the correct answer.

ayfat23

What usually happens when there is inflation in a country as regards this ques is that B: There's more money in circulation and the prices rise.

  • Inflation can be regarded as  measurement of how the prices of good as well as services is going higher. It usually happen when the price of goods increases as a result of increase in the  cost of production.

  • These cost of production could be
  1. raw materials
  2. wages
  3. Labor cost

  • However ever , when there is very high  increase in demands, then inflation can comes in because the consumer has willingness to pay more for a particular product.

Therefore, option B is right.

Learn more at: https://brainly.com/question/19170370?referrer=searchResults

Related Questions