PTC.S2.Q23 - In any country, inflation occurs when the money supply grows more

AlphaAnderson

For this NA question I choose B, could someone explain to my why C is correct?

Admin Note: Edited title. Please use the format: "PT#.S#.Q# - brief description of the question"

breeannerubel

I would like to discuss this as well!

Initially I was torn between A and E, but then realized that both of those wouldn't work. I took a second look at B, C, and E. My thought process behind ruling out B was: "We don't know that an anchor is neccessary. If an anchor is necessary, we don't know that it needs to be one "such as" (which I took to mean alike) gold." My thought process behind ruling out C was: "If Inflation is caused by the MS growing more than PGS and deflation is caused by the PGS growing more than MS, than if MS and PGS grew or decreased equally - theoretically - the PGS of the economist's country could grow. And how am I supposed to know how likely or unlikely that is? So, eliminate it" (clearly, that is not correct.) I struggled with D, but just ended up going with that AC becuase I did not like any of the other ACs.

I would very much appreciate a more specific breakdown of my C is correct so that I can find the flaws in my process!