In a period of inflation and price rises the supply of money remains - (1) the same (2) increases (3) decreases (4) increases or decreases pro-portionately.

In a period of inflation and price rises the supply of money remains - (1) the same (2) increases (3) decreases (4) increases or decreases pro-portionately.
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(2) increases Explanation: Money supply is the total amount of monetary assets available in an economy at a specific time. The relation between money and prices is historically associated with the quantity theory of money. There is strong empirical evidence of a direct relation between long-term price inflation and money-supply growth, at least for rapid increases in the amount of money in the economy.
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In a period of inflation and price rise the supply of money remains (1) the same (2) increases (3) decreases (4) increases or decreases proportionately.

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