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The Populist Party

Question 4 • LA-US History A ? Distance Learning

Increasing the amount of currency in circulation would lead to

Answer
A
deflation.
B
inflation.

Explanation

Increasing the amount of currency in circulation raises the money supply. If the amount of goods and services available does not increase as much, more money competes to buy those goods, pushing prices upward. This is inflation, so choice B is correct; deflation means prices are falling.

AI-written and checked against the verified answer.

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