WBCS.LIVE practice question

A cause of inflation is:

Solve this multiple-choice question and check the correct answer with its explanation below.

Answer options

  1. Increase in money supply
  2. Increase in money supply and fall in production
  3. Fall in production
  4. Decrease in money supply and fall in production

Correct answer and explanation

Correct answer: Increase in money supply and fall in production