When the Economy Grows, Often Inflation Increases as Well

question 2

Multiple Choice

When the economy grows, often inflation increases as well. This condition illustrates the principle of ______.

• A) interrelationship of economic goals
• B) increasing balances of the economy
• C) fiscal policy failure
• D) competition of economic goals

---

Definitions:

Absence of Trade

A situation or condition in which there is no exchange of goods or services between people or entities.

Autarky

is an economic system or policy of self-sufficiency where a country does not engage in international trade, relying instead on its own resources.

International Trade

The exchange of goods and services between countries, often influenced by regulations, tariffs, and global economic conditions.

Volume of Trade

The total amount of stocks, securities, or commodities that are bought and sold over a specific period of time.