In less than two years in the early 1920s, the cost of a German newspaper rose from 0.30 marks to 70,000,000 marks. This is a spectacular example of a. market power caused by a change in the country’s standard of living. b. market power caused by a single firm controlling the newspaper production. c. inflation caused by increased productivity in the economy. d. inflation caused by an increase in the quantity of money in the economy.

Option D

Explanation:

When there is inflation it increases the money flow in the economy. When there is increased money flow the customers spend a lot of money on the goods and services so the pricing of the products are also based on the inflation in the economy.

Though there is increased prices the income of the people are also increased to that level. This can simply be called as increased cost of living. The prices are increased due to the increased wages of the people.

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