What occurs when there is a lot of money in circulation, but it is worth less and prices are rising?

Question

Responses

recession

recession

inflation

inflation

deflation

deflation

shortage

Answer 1

When there is a lot of money in circulation, but it is worth less and prices are rising, it is typically a sign of inflation. Inflation refers to the general increase in prices over time, caused by an excess supply of money in the economy. This can erode the purchasing power of money and negatively impact individuals and businesses.