Question

Too little money makes prices fall, which is bad. But printing more money, when there isn't more production, makes prices rise, which can be just as bad. No wonder economics – the study of money, trade and business – is often called the "dismal science."
What conclusion is BEST supported by the paragraph above?

A
Determining how much money to print is a complex process that requires balance.
B
Printing too much money can cause irreversible damage to a country's economy.
C
Studying money requires a depressing look at the money, trade and business of a country.
D
Prices tend to fall when too much money is printed and rise when too little money is printed.

Answer 1

Determining how much money to print is a complex process that requires balance.

Answer: Option A.

Explanation:

Economics is the study of the economy and the processes that the economy is involved into which include the production, the consumption, and the distribution of the goods and the services in the economy.

It is related and the study of the activities which are related to money. Thus it is the related with the growth and development of the economy. So the study of economy is a very complex study and there should be a proper balance maintained in it.