A statement that is often used to describe demand-pull inflation is:
A)a rising tide lifts all boats.
B)money is easily earned, but not easily saved.
C)too much spending chasing too few goods.
D)there is no such thing as a free lunch.

Question

Quizplus · Accepted Answer

Demand-pull inflation occurs when there is too much spending in the economy chasing too few goods. This leads to an increase in the price of goods and services due to the high demand. The statement "too much spending chasing too few goods" accurately describes this type of inflation.

A Statement That Is Often Used to Describe Demand-Pull Inflation