It Is Often Said That Inflation Is a "Monetary Phenomenon

Multiple Choice

It is often said that inflation is a "monetary phenomenon." The most accurate interpretation of this phrase is that

A) the price level cannot rise without an increase in the money supply.
B) a continuous rise in prices is possible only with continuing increases in the money supply.
C) only an increase in the money supply can start a period of inflation.
D) repeated supply shocks cannot drive up prices if there is no monetary validation.
E) increases in the price level are always associated with increases in the money supply.