Which of the Following Is True of Inflation

Multiple Choice

Which of the following is true of inflation?

A) It occurs when the demand for a particular currency is more than the supply.
B) It occurs when securities are purchased in one market for immediate resale in another.
C) It occurs when two parties agree to exchange currency and execute a deal at a specific date in the future.
D) It occurs when the quantity of money in circulation rises faster than the stock of goods and services.
E) It occurs when output increases faster than the money supply.