Inflation is an economic situation in which more money circulates, but the money has less value." true false

- "the four new england colonies of colonial america included colonies of new hampshire, massachusetts bay colony, rhode island and connecticut."

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the correct answer is d. the monetary reserve is a set of funds represented in currency, money or similar, saved as a forecast of possible needs or for legal reasons.

the increase or decrease in the monetary base influences in the increase or decrease of the inflation rate. therefore, the excess of monetary reserve will cause the reduction of inflation.