If there is an increase in the money supply that causes prices to rise and leads to inflation, what happens to money?

A. It gains purchasing power.
B. It changes from commodity money to fiat money.
C. It changes from fiat money to commodity money.
D. It loses purchasing power.

Question

If there is an increase in the money supply that causes prices to rise and leads to inflation, what happens to money?

A.	It gains purchasing power.
 		B.	It changes from commodity money to fiat money.
 		C.	It changes from fiat money to commodity money.
 		D.	It loses purchasing power.

anonymous · Answer

it losses purchasing power

anonymous · Answer

b it changes from commodity money to fiat money.