Question

Refer to the article "The Value of Money" in your Money, Money, Money magazine for a complete version of this text.

Answer 1

Answer:

"Governments printing and circulating more money is a way for them to increase inflation on purpose."    Yes

"This means that wages have not kept up with inflation when it comes to housing prices."    No

"This cycle of increased spending and increased production is good for an economy."    Yes

"More demand for a product increases how much of the product is produced."    Yes

Explanation:

A cause and effect relationship is perceived in a sentence when we can see a factor (effect) that was caused by another factor or set of factors (causes).

In this case, in the first sentence shown in the question above, we can see that the increase in inflation (effect) is caused by the decision of governments to print and circulate (causes) more money in a region.

In the third sentence, we can see that a cycle of increased spending and production of products (causes) causes good effects on the economy (effect).

In the fourth sentence, we can see that a high demand (cause) for a product causes an increase in the production of that product (effect).