Multiple Choice
Which of the following events could cause inflation in the United States-a country that uses fiat money?
A) There is a discovery of a new silver mine.
B) There has been a decision made to switch from a currency based on the amount of gold (a scarce metal) to a currency based on the amount of silver (a plentiful metal) .
C) Individuals are frustrated by the infrequent occurrence of the double coincidence of wants.
D) The government decides to print more money.
E) The government decides to transition to a commodity-backed money.
Correct Answer:

Verified
Correct Answer:
Verified
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