Refer to the article “The Value of Money” in your Money, Money, Money magazine for a complete version of this text

Based on the “Inflation” section of the article, what is one cause of inflation?


As governments reduce the amount of money in circulation, there is less money to spend.

When the supply of a product decreases, its price increases.

As the demand for a product increases, suppliers make more of the product.

When manufacturers lower the cost of a product, the demand for the product increases.