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  • General Knowledge Test 2002-3
  • When too much money is chasing too few goods, the situati...
Multiple choice

When too much money is chasing too few goods, the situation is?

  1. Deflation

  2. Inflation

  3. Recession

  4. Stagflation

Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Inflation occurs when the demand for goods and services exceeds their supply, often described as too much money chasing too few goods. This imbalance leads to a general increase in price levels over time.

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