Question

Luz manages a chain of bars and restaurants in a tri-county area that has recently experienced an economic boom because of fracking and high oil prices. What is most likely to happen when there is too much money in the tri-county economy?

Answer 1

Answer:

an increase in prices.

Explanation:

When there is too much money in the economy due to high oil prices, prices tend to go up because surplus cash is pursuing few goods.

It is easy in this scenario to have prices double for some goods.

This is why where in areas where there is economic boom all prices go up from real estate to petty goods. This trend becomes the norm as residents take new price regime as normal.