If the amount of available money in a country’s economy were to increase suddenly, what consequence would you expect to follow? A. A period of inflation
B. A period of deflation
C. An immediate depression
D. A sudden decrease in demand for goods
If the amount of available money in a country’s economy were to increase suddenly, what consequence would you expect to follow?
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A. A period of inflation
When the amount of available money in a country’s economy increases suddenly, it generally leads to higher demand for goods and services. As people have more money to spend, they tend to buy more, which can drive prices up, resulting in inflation. This is because the supply of goods may not immediately increase to meet the higher demand, creating upward pressure on prices.