Learning: The Global Business Environment QUESTION 0 How does inflation occur? ANSWER IAMSURE When the money supply of a country expands but production does not When the government owes money to its creditors When the money available in the economy and the quantity of goods produced grow at the same rate When exchange rates are set so the price of similar products in different countries are the same IDONTKNOWYET

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Learning: The Global Business Environment QUESTION 0 How does inflation occur? ANSWER IAMSURE When the money supply of a country expands but production does not When the government owes money to its creditors When the money available in the economy and the quantity of goods produced grow at the same rate When exchange rates are set so the price of similar products in different countries are the same IDONTKNOWYET

Answer 1

Inflation occurs when the money supply of a country expands but production does not. This means that there is more money circulating in the economy than there are goods and services available, leading to an increase in prices.

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