In a demand-pull inflation, if the Fed stops expanding the quantity of money,
A)a cost-push inflation will occur.
B)the demand-pull inflation ends.
C)a deflation will occur.
D)government expenditure will cause the demand-pull inflation to continue.
E)None of the above answers is correct.

Question

Quizplus · Accepted Answer

If the Fed stops expanding the quantity of money, the demand-pull inflation will end.

In a Demand-Pull Inflation, If the Fed Stops Expanding the Quantity