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

Question

Quizplus · Accepted Answer

An increase in exports could result in increased demand for goods and services, leading to increased prices and demand-pull inflation. Decrease in wage rates (B) and decrease in government expenditure (C) are more likely to lead to deflationary pressures. An increase in tax rates (D) could have an impact on prices, but it is not necessarily a direct cause of demand-pull inflation.

Which of the Following Factors Could Start a Demand-Pull Inflation