Which of the following could NOT start a demand-pull inflation? A) increases in oil prices B) increases in net exports C) increases in the quantity of money D) increases in government expenditure

Question

Quizplus · Accepted Answer

Increases in oil prices would lead to cost-push inflation, not demand-pull inflation. Demand-pull inflation occurs when there is increased demand for goods and services, leading to an increase in their prices. Increases in net exports, quantity of money, and government expenditure could all potentially lead to an increase in demand and therefore demand-pull inflation.

Which of the Following Could NOT Start