The government of West Tarragon declared the lowest unit of its currency to be redundant from the next quarter. The polka, which is the lowest denomination of the currency in West Tarragon, is a copper coin that has been in circulation for the last 40 years. The government justified its decision by saying that the purchasing power of the polka has dwindled substantially over time. Jenny Merchant, a journalist, claims that this move will adversely affect the average consumer by pushing up the price level. Which of the following, if true, would strengthen Jenny's claim that taking the polka out of circulation will cause inflation? A. If the polka is made redundant, the system will only have coins of three denominations. B. The prices of imported raw materials in West Tarragon are expected increase considerably during the next quarter. C. Most cash purchases are likely to be rounded off to a higher unit of the currency once the polka is taken out of the system. D. Many large retail firms in West Tarragon have already stopped accepting the polka. E. Recent market analysis has projected an increase in cashless transactions by almost 40 percent by the end of this year.