An indication that there is inflation in a country is that

A.

There is a decrease in the demand for goods and services

B.

There are too many goods in circulation

C.

The same amount of money buys lower quantity of goods

D.

People prefer to lend than to borrow

Correct answer is C

An indication that there is inflation in a country is that the same amount of money buys lower quantity of goods. Inflation is a general increase in prices and a decrease in the purchasing value of money. This means that the same amount of money can buy fewer goods and services.