Which of the following could lead to demand- pull inflation?
A) an increase in the quantity of money
B) an increase in the money wage rate
C) a decrease in exports
D) an increase in oil prices

Question

Quizplus · Accepted Answer

An increase in the quantity of money can lead to demand-pull inflation as it increases the amount of money available to consumers and businesses, which leads to an increase in demand for goods and services. This increase in demand can cause prices to rise as producers try to keep up with the demand. The other options listed can contribute to inflation in other ways, but not necessarily demand-pull inflation.

Which of the Following Could Lead to Demand- Pull Inflation