Consider the following statements with reference to inflation:
1. Inflation is the decline of purchasing power of a given currency over time.
2. Generally a decrease in money supply triggers inflation.
3. Money supply can be increased by the monetary authorities either by printing and giving away more money to the individuals, by legally devaluing the legal tender currency
Which of the statements given above is/are correct?
1
1 and 2 only
2
2 and 3 only
3
1 and 3 only
4
1, 2, and 3