an increase in the amount of money in circulation would cause a?
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An increase in the amount of money in circulation would cause inflation.
To understand why this happens, let's explain the concept of inflation. Inflation occurs when there is a general increase in prices, which reduces the purchasing power of money. When there is more money in circulation, people have more spending power, leading to increased demand for goods and services.
One way to track inflation is by looking at the Consumer Price Index (CPI), which measures the average change in prices of a basket of goods and services over time. To get information on the current CPI, you can visit the website of your country's statistical agency or central bank, as they usually publish this data regularly.
It's important to note that the relationship between money supply and inflation is not always straightforward and can be influenced by various factors, such as the velocity of money (how quickly it circulates), economic productivity, and consumer behavior.