Which of the following factors could start a demand- pull inflation ?
A) a decrease in government expenditure
B) a decrease in wage rates
C) an increase in exports
D) an increase in tax rates

Question

Quizplus · Accepted Answer

An increase in exports would increase income and therefore increase demand, leading to a demand-pull inflation. The other choices would decrease demand and reduce the likelihood of inflation.

Which of the Following Factors Could Start a Demand- Pull