The main economic influence that causes inflation is:
A)Changes in the stock market.
B)Decreases in interest rates.
C)Increases in employment.
D)Decreases in government spending.
E)Increases in demand without increases in supply.

Question

Quizplus · Accepted Answer

Increases in demand without corresponding increases in supply can lead to inflation. This situation, known as demand-pull inflation, occurs when the demand for goods and services exceeds the available supply, leading to higher prices.

The Main Economic Influence That Causes Inflation Is