A demand- pull inflation requires persistent increases in
A) government expenditures.
B) the quantity of money.
C) real wages.
D) tax rates.

Question

Quizplus · Accepted Answer

Demand-pull inflation is caused by an increase in demand for goods and services relative to supply. This increase in demand can be fueled by an increase in the quantity of money in circulation, as more money in people's hands means they have more purchasing power and can bid up prices.

A Demand- Pull Inflation Requires Persistent Increases in