INFLATION: CAUSE AND RESULT
Inflation is defined as an increase in the money supply. Inflation can also be caused by an increase in the rate in which money is spent. The president or Congress can budget more money for certain projects, or to help those suffering loss due to the recent pandemic. But this does not affect prices until the money is actually spent. Look at it this way. There is generally only a certain amount of goods and services in the world. If you increase the money competing for those goods without an increase in production you have more money competing for the same product, so the price has to go up.- Tuesday, October 25, 2022