Question

Write whether true or false :
1
(i) Inflation may occur in an economy
where the volume of money actively
bidding for goods and services in-
creases faster than the available sup-
ply of goods and services.​

Answer 1

QUESTION :

TRUE OR FALSE

Inflation may occur in an economy where the volume of money actively bidding for goods and services increases faster than the available supply of goods and services.

ANSWER :

TRUE

EXPLAINATION :

• Inflation is a measure of the rate of rising prices of goods and services in an economy. Inflation can occur when prices rise due to increases in production costs, such as raw materials and wages. A surge in demand for products and services can cause inflation as consumers are willing to pay more for the product.
• Hence, when the volume of money actively bidding for goods and services increases faster than the available supply of goods and sservices, inflation happens.

Answer 2

true is the correct answer