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What is the primary factor that causes galloping inflation?
  • a)
    Excessive money supply
  • b)
    Increase in consumer demand
  • c)
    Increase in government spending
  • d)
    Decrease in aggregate supply
Correct answer is option 'A'. Can you explain this answer?
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What is the primary factor that causes galloping inflation?a)Excessive...
Galloping inflation, which involves an extreme rise in prices, is primarily caused by excessive money supply in the economy. When the supply of money exceeds the available goods and services, it can lead to rapid and excessive price increases.
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What is the primary factor that causes galloping inflation?a)Excessive money supplyb)Increase in consumer demandc)Increase in government spendingd)Decrease in aggregate supplyCorrect answer is option 'A'. Can you explain this answer?
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