When the amount of money present in the economy causes prices to rise it is called

a. panic

b. deflation

c. recession

d. inflation

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Among the options given on the question the correct answer is option D.

Inflation

Explanation: When the amount of money present in the economy causes prices to rise it is called inflation.

It is a economical which is defined in the economy as a quantitative measure of the rate at which the average price level of a basket of selected goods and services in an economy increases over a period of time.

Basically it is the rise of price of goods and service than before as the result of losing the value of the money. This a decrease of purchasing power which affects general economic growth of a country. The value of money decreases when the money supply is increased.  So the surplus amount of money  causes the inflation.

The Central bank of a country regulates the money supply to prevent the inflation.

D

Explanation: