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Question
Inflation is caused by
Options:
A .  Decrease in money supply
B .  Increase in supply of goods
C .  Increase in cash with the government
D .  Increase in money supply
Answer: Option D
Answer: (d)
Inflation is increased in the prices of commodities. It is caused due to decrease in supply and an increase in demand for commodities.
So when the money supply in the economy increases it means people have more purchasing capacity and thus demand increases which result in inflation. Some factors affecting inflationary pressure.

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