Which of the following would lead to higher inflation in the long run?
A)A decrease in consumer confidence
B)An increase in imports
C)An increase in taxes
D)An increase in government spending
E)An increase in the savings rate

Question

Quizplus · Accepted Answer

An increase in government spending leads to higher demand for goods and services, which can push up prices and increase inflation in the long run.

Which of the Following Would Lead to Higher Inflation in the Long